Financial Statements 2003 - National Bank of Kuwait

Main HeadingMain heading sub copy20 Exposure to credit risk under financial instrumentsMiddleNorthEast America Europe Asia Other TotalKD 000’s KD 000’s KD 000’s KD 000’s KD 000’s KD 000’s2003Geographic regionCash and deposits with banksand other financial institutions 1,278,343 18,789 53,765 10,869 4,540 1,366,306Kuwait government treasury bills 418,345 - - - - 418,345Kuwait government treasury bonds 227,782 - - - - 227,782Loans and advances to customers 2,244,505 93,226 75,827 51,958 12,873 2,478,389Investment securities 144,250 301,248 151,386 97,945 22,965 717,794Kuwait government debt bonds 135,320 - - - - 135,320Other assets 41,553 1,597 10,201 - 2,225 55,5764,490,098 414,860 291,179 160,772 42,603 5,399,512Commitmentsand contingent liabilities (Note15) 934,148 20,031 153,920 204,651 2,114 1,314,8645,424,246 434,891 445,099 365,423 44,717 6,714,376Industry sectorTrading and manufacturing 1,752,965Banks and other financial institutions 2,953,599Construction and real estate 307,077Other 1,700,7356,714,376Credit risk exposure in respect of earning assets and off balance sheet financial items represents the carrying values ofassets and contingencies which could be impacted as a result of failures by the group’s counterparties to discharge theirobligations under these contracts.Concentrations of credit risk arise from exposure to customers having similar characteristics in terms of the industry inwhich they are engaged or the geographical location in which they operate such that their ability to dischargecontractual obligations may be similarly affected by changes in political, economic or other conditions. Significantconcentrations of the group’s risk assets by region and industry sector are set out above.47