28/01/2025
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28/01/2025
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Mr Hamad Al Bahar
Mr. Isam Al Sager
KUWAIT CITY, Jan 28: National Bank of Kuwait (NBK) has announced its financial results for the financial year ended 31 December 2024.The Bank reported a net profit of KD 600.1 million (USD 1.9 billion), compared to KD 560.6 million (USD 1.8 billion) for the financial year 2023, an increase of 7.0% year-on-year.
Earnings per share (EPS) stood at 69 fils by the end of 2024, compared to 65 fils by the end of 2023, Meanwhile, total assets as of December 2024 grew by 7.1% year-on-year, reaching KD 40.3 billion (USD 130.9 billion).
Customer deposits grew by 4.2%, totaling KD 22.9 billion (USD 74.2 billion) as of December 2024. Meanwhile, Group loans and advances reached KD 23.7 billion (USD 76.9 billion) by December 2024, reflecting a growth of 6.4% year-on-year.
In the meantime, shareholders' equity also saw an increase, standing at KD 3.9 billion (USD 12.7 billion), up by 5.9% year-on-year.
In terms of distributions, the Board of Directors has proposed a cash dividend of 25 fils per share for the second half of 2024, bringing the total cash dividend for the year to 35 fils, equivalent to around 50% of net profits. Furthermore, the Board has recommended the distribution of bonus shares at a ratio of 5%. These proposed distributions are subject to the approval at the Annual General Assembly (AGM).
Adapting To Changing Conditions
Commenting on the bank's annual financial results, Hamad Al-Bahar, NBK Group Chairman stated, “In 2024, we delivered strong performance, showcasing the resilience and adaptability of our flexible, diversified business model in response to varying economic conditions. This success was bolstered by a robust capital base, high asset quality, strong liquidity, and prudent risk management.”
He explained that the bank remains committed to balancing the achievement of optimal returns for its shareholders while addressing the evolving needs of its customers. He further emphasized that sustainability has become a key driver in strengthening the bank's long-term growth prospects, as it continues to implement significant initiatives that support responsible business practices and contribute to the sustainable development of Kuwait’s economy.
"In 2025, NBK aims to accelerate its sustainable financing efforts, targeting a sustainable asset portfolio of approximately USD 10 billion by 2030," stated Al-Bahar. He further highlighted that the bank continues to implement various initiatives as part of its efforts to achieve carbon neutrality.
Al-Bahar stated that throughout 2024, NBK strengthened its social contributions by launching and supporting numerous programs and initiatives across various sectors, including health, social development, the environment, youth, education, and women's empowerment. These efforts are aimed at reinforcing the foundations of sustainable development in alignment with Kuwait Vision 2035 and the National Development Plan (NDP), further advancing NBK's leading position as the largest contributor to social responsibility in Kuwait.
Sustainable Growth
Meanwhile, Mr. Isam J. Al-Sager, NBK Vice Chairman and Group CEO, said: “Despite heightened geopolitical tensions regionally and globally in 2024, along with their adverse economic repercussions and the onset of declining interest rates, NBK successfully maintained its trajectory of sustainable growth. The Group's net operating income grew by 7.2% year-on-year, reaching KD 1.3 billion (USD 4.1 billion)”.
Al-Sager emphasized that NBK's financial results for 2024 reflect exceptional operational performance across its various business sectors, particularly its core banking operations. He highlighted the significant contributions of the Group's international operations and Boubyan Bank, the Group's Islamic banking arm, to both revenues and net profits during the year.
Al-Sager highlighted NBK's ongoing efforts to expand its customer base by offering innovative digital products and services of international standards, coupled with exceptional customer service. He emphasized the bank's continued investments in technology and innovation, reinforcing its leadership in digital banking solutions that drive sustainable growth. These efforts not only maximize value for customers and shareholders but also contribute positively to our communities and to all stakeholders. This commitment has earned the bank numerous prestigious accolades, including being named the “Best in Innovation- Global Winner” for 2024, for the second consecutive year by Global Finance magazine.
Al-Sager emphasized that NBK Group is dedicated to further advancing its reputation as a trusted financial partner by fostering deeper relationships with existing customers and capitalizing on emerging opportunities. He highlighted the Group’s commitment to reinforcing its leadership in investment and wealth management services across the region, noting the launch of the "NBK Wealth" brand in 2024, which has established the largest wealth management entity in Kuwait and positioned it among the leading providers in the region.
Al-Sager highlighted NBK’s significant advancements in sustainability during 2024, emphasizing the bank's commitment to its ESG strategy, which underscores its leading role in shaping a more sustainable and prosperous future for all. He noted that NBK was the first bank in Kuwait to join the Partnership for Carbon Accounting Financials (PCAF) and achieved a major milestone by issuing Kuwait’s first green bonds, valued at USD 500 million, solidifying its position as a trailblazer among financial institutions in the country.
In the meantime, Al-Sager emphasized NBK’s unwavering commitment to investing in human capital, highlighting that in 2024, the bank continued to attract and nurture young talent through top-tier training and development programs aligned with international standards. These initiatives aim to cultivate a highly skilled generation of banking professionals, with a particular focus on digital competencies that have become indispensable in the evolving landscape of banking transactions driven by advanced technology and artificial intelligence.
Operational Environment
Regarding his outlook for the operational environment in 2025, Al-Sager expressed optimism about the continued momentum in project awards, building on the progress achieved in 2024 amid political stability. He noted that with decision-making now centralized within the government, processes have become more streamlined and efficient. Al-Sager also expressed hope that this positive trajectory would be complemented by the enactment of key laws and legislations aimed to bolster domestic economic growth.
Al-Sager emphasized that NBK aims to play a pivotal role in financing upcoming mega projects, further solidifying its position as the government’s primary partner in funding major strategic initiatives. He highlighted that the anticipated improvement in project awards, coupled with the downward trajectory of interest rates, is expected to positively impact credit demand across both corporate and retail sectors. However, he acknowledged the persistence of certain challenges that could have adverse economic repercussions, particularly the ongoing geopolitical tensions at both regional and global levels.
Key financial indicators for FY2024
•tNet operating income stood at KD 1.3 billion (USD 4.1 billion), up 7.2% year-on-year
•tTotal assets grew by 7.1% year-on-year, at KD 40.3 billion (USD 130.9 billion)
•tTotal loans and advances increased by 6.4% year-on-year to KD 23.7 billion (USD 76.9 billion)
•tCustomer deposits grew by 4.2% year-on-year to KD 22.9 billion (USD 74.2 billion)
•tShareholders’ equity amounted to KD 3.9 billion (USD 12.7 billion), registering an annual growth of 5.9%.
•tStrong asset quality metrics, with NPL/gross loans ratio at 1.34% and an NPL coverage ratio of 263%
•tRobust Capital Adequacy Ratio of 17.3%, comfortably exceeding regulatory requirements.
