Revenues surge due to oil prices, surplus of KD 7 billion

30/01/2011 00:00 AST

A National Bank of Kuwait (NBK) nine-month 2010-2011 fiscal year financial report revealed a surplus of seven billion Kuwaiti dinars, while revenues surged 17 percent mostly on the back of higher oil prices, with total spending growing by 42 percent compared to the same period last year.

The more vital demand-impacting expenditures grew at a decent nine percent pace, the report issued on Saturday said.

Total revenues reached KD 15.1 billion and are currently at 156 percent of the budget. Oil prices have averaged almost 77 US dollars per barrel (pb) compared to $67 pb for the comparable nine-month period last year.

The generally stronger global environment and the rise in oil prices translated into a 16 percent increase in oil receipts. At KD 14.1 billion, oil revenues have already surpassed the initial budget projection for the entire fiscal year.

Meanwhile a healthy 40 percent growth in non-oil revenues also reflected improved economic and business conditions. With the exception of income tax revenues" and "service charges", both fell, all other non-oil receipts were up compared to last year.

The most noticeable rise was in "custom fees" which were up 16 percent (KD 22 million), likely reflecting an improving trade sector.

Miscellaneous revenues and fees was another category that rose heftily, more than tripling in value compared to last year (up KD 289 million). This was mostly due to a large United Nations Compensation Commission (UNCC) payment made in October.

Total spending was 42 percent above the same period last year and is currently at 50 percent of budget. It compares well to the historic average. Growth in demand-impacting expenditures was a more moderate nine percent.

Those expenditures stood at 46 percent of the budget, again above the historic average. Current trends point to demand-impacting expenditures closing the year at KD 9.8 billion, or a year-on-year (y-o-y) growth of 15 percent, the report concluded.

In other news, Muthanna Investment Company announced on Saturday the launch of a price-weighted stock market index for Islamic financial institutions in the six states of the Gulf Cooperation Council (GCC).

The index was designed according to internationally-acclaimed standards, containing 1,000 points and a currency of the US dollar.

The GCC Islamic bank index is the first in Kuwait, carrying out its role in reinvesting cash market revenue, and calculating the weight of capital on a daily basis, said First Deputy Chairman of Asset Management Ziyad Al-Ibrahim in a company statement.

GCC banks included in the index are four in Kuwait, two in Dubai, two in Abu Dhabi, three in Bahrain, four in Saudi Arabia and three in Qatar.

KUNA