(Adds detail on unit)
KUWAIT, Sept 23 Commercial Bank of Kuwait
(CBK) said on Sunday it plans to liquidate its
investment unit, according to a bourse filing.
The bank said in a statement the move to close CBK Capital,
a fully-owned subsidiary which manages the bank's proprietary
investment portfolio, would not have a negative impact on the
bank's financial position but gave no details.
The bank was not immediately available for comment.
CBK Capital had around 15 million dinars ($53.5 million) in
capital, according to a source with knowledge of the company's
It has undergone a restructuring and has been reducing
activities for several years.
"Shutting it down has been on the cards for about four
years. CBK's major shareholder did not think it was in his
interests to keep it," the source said.
The bank took provisions against investments in the
portfolio in 2011, according to its annual report.
CBK Capital managed two money market funds, a Kuwaiti stocks
fund and an Islamic finance fund, the source said.
According to its 2011 cash flow statement, the bank spent
117.3 million dinars on acquiring investment securities last
year and its proceeds from disposing of investment securities
totalled 57.3 million. Its dividend income from investment
securities was 3.2 million dinars.
(Reporting by Sylvia Westall; Editing by Mirna Sleiman and