KUWAIT CITY, October 16: National Bank of Kuwait (NBK) has announced its financial results for the nine-month period ended 30 September 2024.The Bank reported a net profit of KD 457.0 million (USD 1.5 billion), compared to KD 431.1 million (USD 1.4billion) for the corresponding period in 2023, improving by 6.0% year-on-year.

 In the three-month period ended September 30, 2024, NBK achieved a net profit of KD 164.6 million (USD 540.1 million), demonstrating an annual growth rate of 5.7%.

Total assets as of the end of September 2024 grew by 6.3% year-on-year to reach KD 39.2 billion (USD 128.5 billion), whereas total loans and advances increased by 6.2% year-on-year to KD 23.2 billion (USD 76.0 billion). Likewise, customer deposits stood at KD22.4 billion (USD 73.5 billion) as of the end of September 2024, reflecting a 7.1% increase compared to the same period in 2023, while shareholders' equity grew by 6.2% year-on-year, totaling approximately KD4.0billion (USD 13.1 billion).

The Bank's asset quality also showed significant improvement, with NPL/gross loan ratio declining to 1.39% while the NPL coverage ratio increased to 263%.

Strategic Diversification

Commenting on the Bank’s 9M2024 financial results, Hamad Al-Bahar, NBK Group Chairman, said: "Throughout the first nine-months of 2024, the Group continued to capitalize on the benefits of its strategic diversification approach across its products, services, and geographic presence. This approach has strengthened our operating performance and driven net profit growth, despite the surge of regional and global geopolitical tensions and their broader economic implications."

Al-Bahar elaborated that NBK achieved solid growth, driven by a diversified and resilient business model that effectively navigates shifting operating conditions. He emphasized that this level of growth was underpinned by prudent risk management practices, a strong capital base, high asset quality, and robust liquidity.

Sustainable Development

NBK continued to strengthen its leadership in sustainability throughout the first nine-months of 2024, building on its sound record in environmental, social, and governance (ESG) practices. The Bank remains dedicated to fostering sustainable development within the communities it operates, while actively supporting the reach of sustainable financing initiatives to its clients across all locations.

Al-Bahar underscored the robustness of NBK’s financial position, high credit quality and its competitive edge within the Kuwaiti banking sector; given the Group’s expansive geographical footprint and its unique  capability to provide both conventional and Islamic banking services through its subsidiary, Boubyan Bank. Furthermore, Al-Bahar emphasized upon the Bank’s steadfast commitment to fostering sustainable development within Kuwait’s economy while reinforcing its position as the leading corporate in ESG practices.

Prudence and Resilience

Meanwhile, Mr. Isam J. Al-Sager, NBK Group Vice Chairman and CEO, said: “The financial results for the first nine-months of 2024 showcase NBK's consistent ability to deliver profit growth through various economic cycles, steered by its resilient business model and prudent approach to risk management”.

Al-Sager highlighted that the Group endorsed further its leading banking brand and position, as its core business segments continue to witness strong growth rates. He noted that the Group's net operating income rose by7.8% in the first nine-months of 2024, reaching KD 931.0 million(USD 3.1 billion).

Innovative Products

Al-Sager emphasized that NBK remains focused on strengthening its position across key market sectors while broadening its customer base through the introduction of innovative digital products and services, alongside delivering exceptional customer service. He noted that the Bank’s ongoing efforts and investments in technology and innovation aim to reaffirm its stewardship in providing digital banking services that promote sustainable future growth. Additionally, these efforts are designed to maximize value not only for customers and shareholders but also for the communities in which the Bank operates and to all its stakeholders.

He further pointed that NBK Group has significantly strengthened the contributions of its Islamic division, Boubyan Bank, along with its international operations, to both operating income and bottom-line during the first nine months of 2024. This achievement underscores the strength of NBK's vision and the effectiveness of its diversification strategy. He reiterated that the Group will continue strengthening its international operations, particularly in key growth markets.

Relentless Pursuit of Excellence

Al-Sager emphasized NBK's steadfast commitment to fostering a sustainable future through the prioritization of best-in-class ESG practices. He highlighted the bank's strategic focus on integrating sustainability initiatives into its business operations, viewing them as integral to its corporate culture. This approach is designed to support the transition to a sustainable, low-carbon economy and to fulfill the Bank's ambitious objective of achieving carbon neutrality by 2060.

Following the recent launch of NBK Wealth, Al-Sager highlighted that NBK Group is experiencing substantial growth in this segment. The new structure aims to establish the bank as the largest wealth management entity in Kuwait and one of the most significant players in the region.

Credit and Project Award

In discussing local credit performance, Al-Sager emphasized the substantial recent surge in project awards in Kuwait year-to-date. He expressed confidence that this positive trend in project awards will bode well for business credit going forward.

Al-Sager also noted that several factors including the influx of a significant number of citizens into the labor market, are expected to enhance consumer spending and demand for credit on both, the business and retail side. He emphasized NBK's commitment to aligning its strategic objectives with Kuwait's National Development Plan and to playing a pivotal role in financing future mega projects; confirming NBK's position as the government's key partner in financing strategic national projects. 

Prestigious Awards

In the third quarter of this year, NBK reaffirmed its strong banking brand and solid financial position by securing the top spot on The Banker's list of the “Top 100 Arab Banks” for 2024. Additionally, the Bank maintained its ninth position among regional banks. The Banker’s ranking was based on a set of criteria, including Tier 1 capital, total assets, profitability, asset quality, return on capital, and return on assets.

In a further testament to its excellence, NBK has garnered nine prestigious awards from Global Finance, a renowned international publication specializing in finance and business. These accolades recognize the Bank's outstanding achievements in innovation and digital transformation, as well as its commitment to delivering top-tier banking solutions that meet customer needs and align with the rapid technological advancements in the banking sector.

For the second consecutive year, Global Finance has recognized NBK as the "Best in Innovation, Global Winner for 2024”, outranking both conventional and Islamic banks. The Bank also secured two prestigious awards in the Middle East: Best in Innovation-Middle East, and Best Online Product Offerings – Middle East. Furthermore, NBK distinguished itself at the local level by winning six out of the ten accolades granted to banks in Kuwait, reinforcing its leadership in innovation and digital transformation.

Key financial indicators for 9M2024

·         Net operating income stood at KD 931.0 million (USD 3.1billion), up 7.8% year-on-year

·         Total assets grew by 6.3% year-on-year, at KD 39.2 billion (USD 128.5 billion)

·         Total loans and advances increased by 6.2% year-on-year to KD 23.2billion (USD 76.0billion)

·         Customer deposits grew by 7.1% year-on-year to KD 22.4billion (USD 73.5billion)

·         Shareholders’ equity amounted to KD 4.0 billion (USD 13.1 billion), registering an annual growth of 6.2%

·         Strong asset quality metrics, with NPL/gross loans ratio at 1.39% and an NPL coverage ratio of 263%

·         Robust Capital Adequacy Ratio of 16.5%, comfortably exceeding regulatory requirements