Kuwait Times, Thu, Apr 25, 2024 | Shawwal 16, 1445
NBK reports KD 146.6m profits
Kuwait:
National Bank of Kuwait (NBK) has announced its
financial results for the three-month period ended 31 March 2024. The Bank
reported a net profit of KD 146.6 million ($476.8 million), compared to KD 134.2
million ($436.6 million) for the corresponding period in 2023, improving by 9.2
percent year-on-year. Total assets as of the end of March 2024 grew by 5.1
percent year-on-year to reach KD 38.3 billion ($124.7 billion), whereas total
loans and advances increased by 5.7 percent year-on-year to KD 22.4 billion
($72.8 billion), while shareholders’ equity reached KD 3.8 billion ($12.3
billion), growing by 7.9 percent year-on-year.
Commenting on the Bank’s 1Q2024 financial results, Hamad Al-Bahar, NBK Group
Chairman, said: “In the first quarter of 2024, we recorded robust profits,
showcasing our commitment to delivering long-term sustainable value to our
customers, community, and shareholders.” “As we continue to capitalize on our
strategic investments in technology and talent, we remain confident in our
ability to achieve further successes in meeting the needs of our customers,”
Al-Bahar confirmed.
Al-Bahar emphasized that NBK’s ongoing success is built upon solid foundations
underpinned by diversification, a key pillar of its strategy. He underscored
that strategically diversifying the Bank’s portfolio and services across
different geographic regions not only mitigates risks but also capitalizes on
favorable prospects. This underscores NBK’s commitment to adaptability,
resilience, and ensuring enduring stability over the long term.
“Kuwait’s economy displays resilience and stability, firmly rooted in robust
foundations. We expect an uptick in activity within Kuwait’s operational scene
throughout 2024, resulting in increased project awards and reinforcing trust in
the country’s business landscape,” Al-Bahar added. “In spite of the recent
escalation in geopolitical tensions in the region, we continue to focus on
advancing our operations in the markets we serve while closely monitoring the
repercussions on the operating environment in the region,” Al-Bahar explained.
He emphasized that in 2024, NBK maintained its dedication to executing a
multitude of impactful initiatives, further solidifying its position as a
frontrunner in community development within Kuwait. Simultaneously, these
endeavors upheld responsible business practices and played a role in fostering
the sustainable advancement of the local economy. Meanwhile, Isam J Al-Sager,
NBK Group Vice Chairman and CEO, said: “We have had a strong beginning to 2024,
with our business segments maintaining momentum throughout the quarter. This
underscores the benefits of our strategic investments and diversified business
portfolio.”
Al-Sager highlighted the Bank’s robust performance, citing strong revenue and
profit growth. He noted that the operational momentum from 2023 carried forward
into the current period, resulting in another quarter of strong profits fueled
by growth across all business sectors. “The Group’s net operating income
increased by 11.2 percent year-on-year, reaching KD 309.0 million ($1.0
billion).
This increase was fueled by improved revenues across various business sectors,
reflecting the diverse and multiple sources of income within the Group,”
Al-Sager added. Al- Sager stressed that the domestic political environment
witnessed some recent instability in the form of changes in parliament and
government. This is likely to result in the postponement of the long-awaited
investment opportunities in Kuwait. He expressed his hopes of an improved and
more stable political landscape going forward; which should positively reflect
on the business environment domestically.
Sustainable growth
Al-Sager highlighted that NBK’s results underscore the success of its strategy
in achieving sustainable growth while also delivering long-term value to its
shareholders. He emphasized that the bank, buoyed by the robustness of its
balance sheet and its diversified business model, achieved business volume
growth by prioritizing customer-centric approaches and delivering innovative
banking experiences.
“We are seeing considerable momentum in both attracting and developing
relationships with our clients. This is further supported by our strong position
in terms of credit quality and capitalization, providing us with a solid
foundation. This positions us well to continue advancing throughout 2024. Our
growth strategy and diversified business mix highlight our resilience and
stability amid a challenging macroeconomic landscape,” Al-Sager noted.
Al-Sager emphasized the importance of prudent risk management, alongside
adequate liquidity, and robust capitalization, which enabled the bank to
maintain its support for customers and achieve a strong performance in the
quarter. He emphasized that financial prudence, combined with ongoing investment
in innovation and development, reflects the Bank’s commitment to supporting
customers and the community, especially in challenging times.
He underscored that in 2024, NBK will capitalize on its robust position to
advance its goal of extending its brand presence across diverse sectors, notably
in wealth management. This encompasses the launch of “NBK Wealth”, aimed at
pioneering innovative and advanced solutions in private banking, wealth
management, financial planning, investment management, and advisory services
through a global network of operations. Al-Sager also emphasized the significant
strides the Bank has made in its digital transformation journey, focusing on
enhancing the banking experience to meet the actual needs and aspirations of its
customers. This has been achieved through the design and implementation of a
range of digital services and products.
Regional leadership
“In the first quarter of the year, NBK’s regional leadership in sustainability
was acknowledged, culminating in receiving the Best Bank in the Middle East for
ESG-Related Loans Award 2024 by Global Finance. This accolade underscores our
dedication to sustainable business practices and strengthens our aspiration to
serve as the key partner for our clients in sustainable financing endeavors,”
Al-Sager noted.
Al-Sager also stated that NBK has received a score of “C” in the categories of
Climate Change and Forests 2023, as announced by CDP, a globally recognized
non-profit organization overseeing the leading environmental disclosure, noting
that NBK stands out as the sole bank in Kuwait to be rated by CDP, establishing
its position among the leading financial institutions in the GCC engaged in the
initiative.
Al-Sager underscored that in 2024, NBK will continue strengthening its position
through investing in its people. The bank will also prioritize offering the best
products and services tailored to its customers’ needs, expanding its presence
in existing markets, and further developing its innovative businesses to better
serve its customers and community.
Key financial indicators
• Net operating income of KD 309.0 million ($1.0 billion), up 11.2 percent
year-on-year
• Total assets increased by 5.1 percent year-on-year, at KD 38.3 billion ($124.7
billion)
• Total loans and advances grew by 5.7 percent year-on-year to KD 22.4 billion
($72.8 billion)
• Customer deposits increased by 9.0 percent by the end of March 2024 to KD 22.3
billion ($72.4billion)
• Shareholders’ equity amounted to KD 3.8 billion ($12.3 billion), registering
an annual growth of 7.9 percent.
• Strong asset quality metrics, with NPL/gross loans ratio at 1.51 percent and
an NPL coverage ratio of 248 percent.
• Robust Capital Adequacy Ratio of 17.2 percent, comfortably in excess of
regulatory requirements.