Boubyan posts KD51m in net losses during 2009

Kuwaiti Islamic lender Boubyan Bank reported a net loss for 2009 yesterday, after booking provisions against bad loans.

Boubyan – which is 40-per cent owned by the country's largest bank, National Bank of Kuwait (NBK) – made a net loss of KD51.7 million (Dh654.8 million) in 2009. That compares with profit of KD1.85m in 2008, the lender said in a statement yesterday.

The lender booked KD66.9m in provisions in 2009, it added. Earlier this month, Boubyan said it received subscriptions of more than 85 per cent to a share issue, which it may reopen.

It said last year it planned to raise its capital by 50 per cent at 250 fils per share. Reuters calculated then that the share issue would increase the lender''s capital to about KD174.8m. There are 1,000 fils to the dinar.

The lender's major shareholders NBK and Commercial Bank of Kuwait, were among the subscribers in the rights issue. The bank's shares closed 2.25 per cent down yesterday.

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.

Follow Emirates 24|7 on Google News.