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Egypt: NBK-Egypt reports EGP 2.6 billion in net profit by the end of 3Q 2023

National Bank of Kuwait - Egypt (NBK-Egypt) has announced net profits of EGP 2.6 billion at the end of the third quarter 2023. This marks a significant increase from the EGP 1.3 billion  recorded in the corresponding period of last year, representing an impressive annual growth of 100%.

Net Operating Income stood at EGP 6.1 billion, recording a substantial increase of 97% from the EGP 3.1 billion recorded in the corresponding period last year. In the meantime, Net Interest Income jumped by 89%, reaching EGP 4.9 billion compared to EGP 2.6 billion in the corresponding period of 2022.

On the other hand, Net Operating Income (excluding interests) increased to EGP 1.18 billion by the end of the third quarter, compared to EGP 508 million in the corresponding period of 2022, up by 132.3%, while Cost to Net Operating Income dropped from 37.9% in 3Q2023 to 31.9% in 3Q2023.

Total assets reached EGP 118.1 billion by the end of September 2023, up by 12.4% compared to the year-end balance of EGP 105.1 billion in 2022. Furthermore, the net balance of loans and credit facilities expanded to EGP 68.6 billion by the end of September 2023, reflecting a growth rate of 25% compared to EGP 55 billion recorded at the end of 2022. Moreover, customer deposits continued to grow, rising by 12% to reach EGP 94.7 billion in 3Q2023, compared to EGP 84.5 billion by the end of 2022.

Commenting on the financial results announced by NBK-Egypt, Ms. Shaikha Al-Bahar, Deputy Group Chief Executive Officer, National Bank of Kuwait, and Chairman of NBK-Egypt, said: “NBK- Egypt successfully managed to achieve its highest historical profitability growth by the end of the 3Q2023. This accomplishment highlights the bank's continuous accomplishments to strengthen its foothold in the Egyptian market, which is considered a key growth market for the Group. The Egyptian market is particularly significant due to its promising growth opportunities and favorable prospects.”

Al-Bahar emphasized that the continuous expansion of NBK-Egypt's balance sheet and the favorable progress evident in diverse financial indicators serve as a testament to the success of the bank's diversification strategy. This success is further underscored by the swift progress in its digital transformation initiatives, which aim to broaden the bank's overall market presence, especially in retail services. This strategic focus is particularly significant in the region's largest market, measured by population.

“Our efforts are directed towards enhancing the quality of our services, expanding our geographical reach, and engaging with a more diverse customer base, as we continue to leverage the notable progress the bank is undergoing in terms of advancing and modernizing our digital infrastructure, information technology, and electronic channels. These improvements mark a substantial leap forward, establishing the bank as a powerful competitor in the banking sector,” Al-Bahar added.

“Egypt's operating environment is currently going through an exceptional phase, comparable to that of other emerging markets that have faced consecutive economic shocks. However, we maintain an optimistic outlook that the recent monetary and financial reform measures implemented by the government and the Central Bank of Egypt will positively impact economic performance, contributing to overall growth,” She noted. 

“Egypt is a key growth market for the Group, serving as a strategic long-term investment. The current growth and success we are currently experiencing affirm the Group's forward-thinking vision in choosing Egypt as a strategic investment destination. We are committed to further developing our presence in the country, driven by the rising demand for banking services and higher financial inclusion rates,” Al-Bahar concluded. 

Meanwhile, Vice Chairman, CEO, and Managing Director of National Bank of Kuwait-Egypt, Mr. Yasser El-Tayeb, said: “NBK-Egypt's remarkable business performance has surpassed expectations and our targets for the year, demonstrating the resilience of our business model and its ability to grow, even in the midst of various challenges present in both local and global markets.”

El-Tayeb emphasized that NBK-Egypt maintains a well-balanced distribution of revenue across diverse business activities. This strategic approach is coupled with efficient operational rates and risk ratios, aligning with the dual objectives of achieving growth and ensuring business sustainability.

Credit for this success is attributed to the bank's prudent policies and a sound business model, demonstrating its capability to meet customer needs and diversify income sources effectively.

El-Tayeb further explained that the majority of NBK's income sources in Egypt are well-balanced, derived from credit operations in both the corporate sector and the rapidly expanding retail banking sector. The latter has notably increased in prominence, particularly in recent years, with a very diversified credit portfolio including a wide range of businesses across various sectors ranging from large scale corporations to SMEs. Meanwhile, the retail banking portfolio is also well diversified. 

This solid position reflects the Bank’s strength and the diversity of its revenue streams. He also highlighted that going forward, NBK-Egypt strives to further strengthen its position in retail banking by offering innovative services and products to its retail customers, in addition to continuing the horizontal growth plan by inaugurating new branches covering key locations throughout the Egyptian market.

Furthermore, El-Tayeb highlighted NBK-Egypt's commitment to align its strategies with the global movement towards sustainable finance and the transition to a green economy. The Bank aims to actively support environmentally friendly projects that promote sustainability and the utilization of renewable energy sources to mitigate climate change, since sustainable financing has emerged as a fundamental mechanism and instrument for facilitating and maintaining enduring financial stability.

Recognizing the pivotal role of technological tools and electronic channels in the banking sector and acknowledging their significance in bolstering competitive advantages among banks, NBK has persistently and decisively advanced its support for electronic services. It actively encourages customers to broaden their utilization for payments, aligning with the overall policy of the state and the Central Bank of Egypt. In this context, NBK-Egypt aims to foster financial inclusion, bringing new segments of customers into the official banking system to contribute to the evolution towards a society with reduced dependence on physical currency.

Egypt: NBK-Egypt Reports EGP 7.3 billion (Equivalent to KWD 51.9 million) in Net Profit in FY2024

National Bank of Kuwait - Egypt (NBK-Egypt) reported net profits of EGP 7.3 billion (Equivalent to KWD 51.9 million ) for the financial year  2024 compared to EGP 4.021 billion (Equivalent to KWD 41.4 million) reported in 2023 marking an impressive 81% increase compared to financial year 2023.

Net Operating Income stood at EGP 13.5 billion by the end of FY2024, recording a substantial increase of 57% from EGP 8.7 billion recorded by the end of FY2023. In the meantime, Net Interest Income grew by 66%, reaching EGP 11.6 billion compared to EGP 7 billion in FY2023.

Meanwhile, Net Operating Income (excluding interests) increased to EGP 1.9 billion in FY2024, compared to EGP 1.7 billion in FY2023, up by 17%, while Cost to Net Operating Income dropped from 28% in FY2023 to 21.2% in FY2024.

Total assets reached EGP 196 billion by the end of FY2024, up by 50% compared to EGP 131 billion by the end of FY2023. Furthermore, total loans and credit facilities expanded to EGP 104 billion in FY2024, reflecting a growth rate of 37% compared to EGP 76 billion recorded at the end of FY2023.  Additionally, customer deposits increased to EGP 160 billion by the end of FY2024, up from EGP 106 billion at the end of FY2023, representing a growth rate of 51%.

Furthermore, the Return on Average Assets (ROAA) improved to 4.5% by the end of FY2024, compared to 3.4% by the end of FY2023, while the Return on Average Equity (ROAE) increased to 39.2% in FY2024, up from 30.7% in FY2023.

Commenting on the financial results announced by NBK-Egypt, Ms. Shaikha Al-Bahar, Deputy Group Chief Executive Officer, National Bank of Kuwait, and Chairman of NBK-Egypt, said: “NBK-Egypt delivered record profits in 2024, underscoring the success of its operational strategy and reaffirming its trajectory toward further strengthening its position in the Egyptian market. As NBK Group’s most significant market outside Kuwait, Egypt holds substantial growth potential, driven by its promising opportunities and positive economic outlook.”

Al-Bahar highlighted that NBK’s operations in Egypt are among the group’s most profitable, delivering the highest returns on equity and assets.

Al-Bahar emphasized that the sustained expansion of the balance sheet and the growth of the bank's financial indicators reaffirm the success of its business diversification strategy and accelerated digital transformation. This approach aims to strengthen market share, particularly in retail banking, within the region’s most populous country and a key hub for investment opportunities.

“We are committed to enhancing service quality, expanding our geographical presence, and reaching a more diverse customer base. This progress is driven by the significant advancements in our digital infrastructure, information technology, and alternative electronic channels, which have positioned the bank as a strong competitor with a distinct presence in the Egyptian banking sector. This comes amid the rising demand for banking services and the increasing momentum of financial inclusion,” Al-Bahar stated.

“Egypt is a key growth market for NBK Group and a long-term strategic investment, where the Group remains committed to reinforcing its presence and strengthening its position,” Al-Bahar confirmed.

Meanwhile, Vice Chairman, CEO, and Managing Director of National Bank of Kuwait-Egypt, Mr. Yasser El-Tayeb, said: “The bank's strong financial performance at the end of 2024 surpassed expectations and targets, despite challenges and exceptional circumstances affecting the business environment both locally and globally. This achievement underscores the bank’s resilience and prudent business model, reinforcing its ability to sustain success and growth.”

Al-Tayeb emphasized that the bank’s growth is balanced across all business activities, ensuring efficiency and a risk profile aligned with sustainable expansion. This success is driven by a prudent strategy that meets the evolving needs of both corporate and individual clients while diversifying income streams.

Al-Tayeb noted that the bank’s income sources stem from credit operations in the corporate sector, alongside a rapidly expanding retail banking segment, which has grown significantly in recent years. The bank’s credit portfolio reflects a diverse client base, encompassing large, medium, and small enterprises, while its retail banking portfolio serves a broad spectrum of customers. This diversity underscores the strength and stability of the bank’s revenue streams. He further emphasized the bank’s commitment to strengthening its position in retail banking by introducing more advanced services and products tailored to meet customers' evolving financial needs and aspirations.

El-Tayeb further emphasized NBK-Egypt’s commitment to supporting the global shift toward sustainable finance and the transition to a green economy. The bank actively backs environmentally friendly projects that promote sustainability and increased reliance on renewable energy while exploring solutions to mitigate climate change and reduce carbon emissions. He highlighted that sustainable finance has become a vital tool for ensuring long-term financial stability and resilience.

He also affirmed the bank’s strong commitment to leveraging technology and digital channels to enhance its competitive edge in the banking sector. Recognizing their pivotal role, NBK-Egypt continues to expand its electronic services and encourage broader customer adoption of digital payments. This aligns with the broader strategy of the Egyptian government and the Central Bank of Egypt to promote financial inclusion, integrate new customer segments into the formal banking system, and drive the transition toward a less cash-dependent economy.

El-Tayeb concluded by highlighting NBK-Egypt’s steadfast commitment to social responsibility, emphasizing that since the Group’s entry into the Egyptian market in 2007, the bank has actively supported the local community. Through partnerships with reputable civil society organizations, NBK-Egypt channels its development efforts toward impactful initiatives, reinforcing its role as a responsible corporate citizen. Social responsibility remains a cornerstone of the bank’s sustainability strategy, contributing to national development across key areas, including:

• Healthcare provision

• Education and employment support

• Environmental conservation

• Social solidarity

• Development of underserved areas

• Economic development