Kuwait's troubled Gulf Bank expects to post a profit in the first quarter after a bailout by shareholders to cover $1.29 billion (Dh4.73bn) in derivatives losses, its chairman said yesterday.
Trading in Gulf Bank could resume "within days", Kutayba Al Ghanim said.
"There will be profit in the first quarter," Ghanim said. "Profit will be better than last year."
He did not elaborate. In 2008, Kuwait's fourth-largest bank by market value made a full-year net loss of 359.5 million dinars (Dh4.55bn), compared with a net profit of KWD130.44 million the previous year, citing losses on derivatives transactions.
In January, it made net loss of KWD1.6m, a relative improvement on fourth-quarter losses of KWD445.5m, the lender said last month.
"Stock trading will start soon after this meeting by a central bank decision," Ghahim told shareholders yesterday. "I think trading will resume within days."
Ghanim voiced optimism the lender is now able to weather market conditions and said it would expand its activities and seek more opportunities in Kuwait in 2009. "The bank now has a capital adequacy ratio of 13.82 per cent," he said.
"This is a strong balance sheet that will give us the financial strength and flexibility to weather the continuing turbulence and uncertainty of the global financial markets."
Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.