Consolidated Financial Statements and Independent Auditors' Report
Consolidated Financial Statements and Independent Auditors' Report
Consolidated Financial Statements and Independent Auditors' Report
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>Consolidated</strong> Statement of <strong>Financial</strong> Position<br />
As at 31 December 2010<br />
<strong>Consolidated</strong> Statement of Cash Flows<br />
For the year ended 31 December 2010<br />
2010 2009 2010 2009<br />
Notes KD 000’s KD 000’s USD 000’s USD 000’s<br />
Assets<br />
Cash <strong>and</strong> short term funds 10 1,171,929 1,622,240 4,176,511 5,781,326<br />
Central Bank of Kuwait bonds 12 435,242 281,489 1,551,112 1,003,168<br />
Kuwait Government treasury bills 12 - 32,477 - 115,741<br />
Kuwait Government treasury bonds 12 422,137 373,202 1,504,408 1,330,014<br />
Deposits with banks 716,422 723,509 2,553,179 2,578,435<br />
Loans <strong>and</strong> advances to customers 11 7,853,325 7,817,110 27,987,616 27,858,554<br />
Investment securities 12 1,320,043 1,171,046 4,704,358 4,173,364<br />
Investment in associates 13 504,296 387,815 1,797,206 1,382,092<br />
L<strong>and</strong>, premises <strong>and</strong> equipment 174,349 152,929 621,344 545,007<br />
Goodwill <strong>and</strong> other intangible assets 14 228,586 249,556 814,633 889,366<br />
Other assets 15 72,615 95,883 258,785 341,707<br />
Total assets 12,898,944 12,907,256 45,969,152 45,998,774<br />
Liabilities<br />
Due to banks <strong>and</strong> other financial institutions 4,073,880 4,269,109 14,518,460 15,214,216<br />
Customer deposits 6,385,238 6,600,243 22,755,659 23,521,893<br />
Other liabilities 16 209,323 199,241 745,984 710,053<br />
Total liabilities 10,668,441 11,068,593 38,020,103 39,446,162<br />
Equity<br />
Share capital 17 359,793 297,350 1,282,227 1,059,694<br />
Proposed bonus shares 18 35,979 29,735 128,222 105,969<br />
Statutory reserve 17 179,897 148,675 641,116 529,847<br />
Share premium account 17 699,840 569,006 2,494,084 2,027,819<br />
Treasury shares 17 (12,410) (59,172) (44,227) (210,877)<br />
Treasury share reserve 17 22,316 19,973 79,530 71,180<br />
General reserve 17 117,058 117,058 417,170 417,170<br />
Retained earnings 17 644,377 553,241 2,296,426 1,971,636<br />
Foreign currency translation reserve 17 (11,578) 15,264 (41,262) 54,398<br />
Cumulative changes in fair values 17 30,561 11,453 108,913 40,816<br />
Share based payment reserve 17 8,297 5,549 29,569 19,775<br />
Total share capital <strong>and</strong> reserves 2,074,130 1,708,132 7,391,768 6,087,427<br />
Proposed cash dividend 17 143,505 117,150 511,422 417,498<br />
Equity attributable to shareholders of the Bank 2,217,635 1,825,282 7,903,190 6,504,925<br />
Non-controlling interests 12,868 13,381 45,859 47,687<br />
Total equity 2,230,503 1,838,663 7,949,049 6,552,612<br />
Total liabilities <strong>and</strong> equity 12,898,944 12,907,256 45,969,152 45,998,774<br />
Mohammed Abdul Rahman Al-Bahar Nasser Musaed Abdullah Al-Sayer Ibrahim Shucri Dabdoub<br />
Chairman Vice Chairman Group Chief Executive Officer<br />
2010 2009 2010 2009<br />
Notes KD 000’s KD 000’s USD 000’s USD 000’s<br />
Operating activities<br />
Profit for the year 302,917 266,636 1,079,533 950,235<br />
Adjustments for:<br />
Dividend income (3,028) (2,076) (10,791) (7,399)<br />
Net gains from investment securities 7 (3,180) (12,888) (11,333) (45,930)<br />
Share of results of associates (11,750) 5,218 (41,875) 18,596<br />
Depreciation of premises <strong>and</strong> equipment 10,151 7,644 36,176 27,241<br />
Amortisation of intangible assets 14 4,469 4,558 15,927 16,244<br />
Provision charge for credit losses 11,792 37,441 42,025 133,432<br />
Impairment losses for investment securities 12 8,144 18,158 29,023 64,711<br />
Share based payment reserve 19 2,748 2,584 9,794 9,209<br />
Taxation 8 16,661 16,310 59,376 58,126<br />
Operating profit before changes in operating<br />
assets <strong>and</strong> liabilities 338,924 343,585 1,207,855 1,224,465<br />
Changes in operating assets <strong>and</strong> liabilities:<br />
Central Bank of Kuwait bonds (153,753) (124,592) (547,944) (444,020)<br />
Kuwait Government treasury bills 32,477 (32,477) 115,741 (115,741)<br />
Kuwait Government treasury bonds (48,935) 103,939 (174,394) 370,417<br />
Deposits with banks 7,087 438,406 25,257 1,562,388<br />
Loans <strong>and</strong> advances to customers (47,873) (899,739) (170,610) (3,206,482)<br />
Other assets 23,268 22,751 82,922 81,080<br />
Due to banks <strong>and</strong> other financial institutions (195,229) (353,144) (695,756) (1,258,532)<br />
Customer deposits (215,005) 1,054,994 (766,233) 3,759,779<br />
Other liabilities 30,984 (59,053) 110,421 (210,453)<br />
Tax paid (15,866) (10,505) (56,543) (37,438)<br />
Net cash (used in) from operating activities (243,921) 484,165 (869,284) 1,725,463<br />
Investing activities<br />
Purchase of investment securities (1,800,904) (1,715,719) (6,418,047) (6,114,465)<br />
Proceeds from sale/redemption of investment<br />
securities 1,665,362 1,756,990 5,935,004 6,261,547<br />
Dividend income 3,028 2,076 10,791 7,399<br />
Increase in holding in subsidiaries (2,674) (1,201) (9,530) (4,280)<br />
Investment in associates 13 (116,108) (263,822) (413,785) (940,207)<br />
Dividend from associates 7,404 6,385 26,386 22,755<br />
Proceeds from sale of associate - 1,309 - 4,665<br />
Proceeds from sale of l<strong>and</strong>, premises <strong>and</strong> equipment 1,293 404 4,608 1,440<br />
Acquisition of l<strong>and</strong>, premises <strong>and</strong> equipment (32,864) (27,685) (117,120) (98,664)<br />
Net cash used in investing activities (275,463) (241,263) (981,693) (859,810)<br />
Financing activities<br />
Proceeds from issuance of rights shares 17 163,542 - 582,830 -<br />
Dividends paid (117,197) (117,374) (417,666) (418,297)<br />
Proceeds from sale of treasury shares 52,331 111,592 186,497 397,691<br />
Purchase of treasury shares (3,226) (38,092) (11,497) (135,752)<br />
Net cash from (used in) financing activities 95,450 (43,874) 340,164 (156,358)<br />
(Decrease) increase in cash <strong>and</strong> short term funds (423,934) 199,028 (1,510,813) 709,295<br />
Exchange difference on translation of foreign operations (26,377) 24,366 (94,002) 86,835<br />
Cash <strong>and</strong> short term funds at the beginning of the year 1,622,240 1,398,846 5,781,326 4,985,196<br />
Cash <strong>and</strong> short term funds at the end of the year 10 1,171,929 1,622,240 4,176,511 5,781,326<br />
The attached notes 1 to 30 form part of these consolidated financial statements.<br />
The attached notes 1 to 30 form part of these consolidated financial statements.<br />
54 National Bank of Kuwait - Annual <strong>Report</strong> 2010 55