Consolidated Financial Statements and Independent Auditors' Report

Notes to the Consolidated Financial Statements
31 December 2010
12 FINANCIAL INVESTMENTS (continued)
Held to
maturity
Available
for sale
Fair value
through
statement
of income
Total
2009 KD 000’s KD 000’s KD 000’s KD 000’s
Investment Securities
Debt securities - Government (Non Kuwait) 24,058 712,627 - 736,685
Debt securities - Non Government 11,485 208,001 - 219,486
Equities - 62,200 423 62,623
Other investments - 117,574 34,678 152,252
35,543 1,100,402 35,101 1,171,046
Central Bank of Kuwait bonds 281,489 - - 281,489
Kuwait Government treasury bills 32,477 - - 32,477
Kuwait Government treasury bonds 373,202 - - 373,202
722,711 1,100,402 35,101 1,858,214
All unquoted available for sale equities are recorded at fair value except for investments with a carrying value of KD 11,584
thousand (2009: KD 6,251 thousand), which are recorded at cost since fair value cannot be reliably estimated.
Debt securities include KD 104,380 thousand (2009: KD 109,976 thousand) which are at variable rates of interest and
KD 978,115 thousand (2009: KD 846,195 thousand) which are at fixed rates of interest.
An impairment loss of KD 8,144 thousand (2009: KD 18,158 thousand) has been made against investments classified
as available for sale on which there has been a significant or prolonged decline in value.
13 INVESTMENT IN ASSOCIATES
Associates of the Group:
Carrying value
2010 2009
KD 000’s KD 000’s
Boubyan Bank K.S.C. 367,313 250,612
International Bank of Qatar Q.S.C. 101,298 100,123
Turkish Bank A.S 35,604 36,973
International Co. for Postal Services 81 107
504,296 387,815
Name of entities
Country of
incorporation
% Capital held
2010 2009
Boubyan Bank K.S.C. Kuwait 47.3 40
International Bank of Qatar Q.S.C. Qatar 30 30
Turkish Bank A.S Turkey 40 40
International Co. for Postal Services Egypt 20 20
The Group increased its holdings in the equity share capital of Boubyan Bank K.S.C. to 47.3 % (2009: 40%) during
the year for a purchase consideration of KD 116,108 thousand. Investments in International Co. for Postal Services
are held through its subsidiary Al Watany Bank of Egypt S.A.E.
Summarised financial information of the associates is as follows:
2010 2009
KD 000’s KD 000’s
Assets 3,312,956 2,919,947
Liabilities 2,818,369 2,578,450
Net operating income 112,111 80,777
Results for the year 42,472 (20,401)
The market value of the Group’s investment in Boubyan Bank K.S.C. at the year end based on the closing share price
amounts to KD 520,811 thousand (2009: KD 233,000 thousand). All other associates are unlisted.
14 GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
Intangible
assets
Total
KD 000’s KD 000’s KD 000’s
Cost
At 1 January 2010 186,982 71,777 258,759
Additions 513 - 513
Exchange adjustments (13,844) (4,074) (17,918)
At 31 December 2010 173,651 67,703 241,354
Accumulated amortisation
At 1 January 2010 - 9,203 9,203
Charge for the year - 4,469 4,469
Exchange adjustments - (904) (904)
At 31 December 2010 - 12,768 12,768
Net book value
At 31 December 2010 173,651 54,935 228,586
72 National Bank of Kuwait - Annual Report 2010 73