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Egypt: NBK-Egypt reports EGP 5.2 billion in net profit by the end of 3Q2024

National Bank of Kuwait - Egypt (NBK-Egypt) has reported net profits of EGP 5.2 billion for the first nine months of 2024, a significant increase from the EGP 2.6 billion reported in the corresponding period of 2023, showcasing an impressive growth rate of 101%.

Net Operating Income stood at EGP 9.7 billion, recording a substantial increase of 57% from EGP 6.2 billion recorded in the corresponding period of 2023. In the meantime, Net Interest Income grew by 65%, reaching EGP 8.2 billion compared to EGP 5 billion in 9M2023.

Meanwhile, Net Operating Income (excluding interests) increased to EGP 1.4 billion in 9M2024, compared to EGP 1.2 million in 9M2023, up 23%, while Cost to Net Operating Income dropped from 32% in 9M2023 to 22% in 9M2024.

Total assets reached EGP 181.9 billion by the end of the third quarter of 2024, up by39% compared to EGP 130.6 billion by the end of 2023. Furthermore, total loans and credit facilities expanded to EGP 98.1 billion by the end of 3Q2024, reflecting a growth rate of 29% compared to EGP 76.1 billion recorded at the end of 2023. Additionally, customer deposits increased to EGP 147.2 billion by the end of 3Q2024, up from EGP 105.9 billion at the end of 2023, representing a growth rate of 39%. Furthermore, The Return on Average Assets (ROAA) improved to 4% in September 2024, compared to 3% in the corresponding period of 2023, while the Return on Average Equity (ROAE) increased to 40% in 3Q2024, up from 28% in the corresponding period of 2023.

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: “The robust growth in NBK-Egypt's profits and financial performance by the end of 3Q2024 underscores the strength of the bank's financial position and the resilience of its profit-generating business model, even amid operational challenges. Since its debut in the Egyptian market in 2007, NBK Group has consistently demonstrated its confidence in the significant opportunities and untapped potential this dynamic market offers”.

Al-Bahar highlighted the Egyptian market's strategic importance to NBK Group, emphasizing its position as a cornerstone of the Group's long-term investment strategy. Egypt is considered the second domestic market for the Group and hosts NBK's largest Kuwaiti investment outside Kuwait. 

The bank has established a strong presence in the Egyptian banking sector as one of the fastest-growing institutions in the market. NBK-Egypt's operations are among the Group's most profitable, consistently delivering high returns on equity. All financial indicators point to continued success, with the bank positioned for further expansion and increased market share. Al-Bahar also noted NBK's significant focus on enhancing retail banking services in Egypt, the most populous market in the region.

"We are committed to enhancing service quality, expanding our geographical reach, and engaging with a broader and more diverse customer base. This strategy leverages the substantial advancements the bank has achieved in digital infrastructure, information technology, and electronic channels, which have experienced remarkable growth. These developments have positioned the bank as a strong competitor in the Egyptian banking sector, particularly amidst the growing demand for banking services and the rising rates of financial inclusion," Al-Bahar added.

Meanwhile, Vice Chairman, CEO, and Managing Director of National Bank of Kuwait-Egypt, Mr. Yasser El-Tayeb, said: “Despite the exceptional challenges faced by the business community both locally and globally, the bank's financial performance at the end of the third quarter of 2024 underscores its resilience and capacity for growth. Strong financial figures and indicators highlight the bank's ability to achieve solid results, reflecting the effectiveness of its business model and strategic direction”.

El-Tayeb emphasized that NBK-Egypt's business growth reflects a balanced expansion across all operations, underpinned by maintaining efficiency and risk ratios aligned with both growth objectives and long-term sustainability. This achievement stems from the bank's prudent strategies and a well-considered business model designed to adapt with agility to customer needs while ensuring operational resilience.

El-Tayeb highlighted that NBK-Egypt's income sources are predominantly driven by credit operations in the corporate sector, complemented by the substantial growth of the retail banking sector, particularly in recent years. The bank's credit portfolio demonstrates a significant diversity, catering to a wide range of companies, including large, medium, and small enterprises. Additionally, the retail banking portfolio encompasses various customer segments, reflecting the robustness and diversity of the bank's revenue streams. This diversity underscores the organization’s strategic strength and its ability to sustain growth across multiple sectors.

Furthermore, he emphasized that the bank is focused on further strengthening its position in the retail banking sector by offering advanced services and products tailored to diverse customer segments. The goal is to establish the bank as a comprehensive financial institution that not only meets all customers' financial needs but also offers a range of services that enhance their connection to the bank, supporting their work and lifestyle both within Egypt and abroad. This vision is bolstered by NBK Group's extensive regional and global presence, operating in 13 countries worldwide, which enables the bank to offer a robust and internationally connected banking experience.

El-Tayeb also stated that the bank recognizes the crucial role of technology and electronic channels in the banking sector, understanding their importance in enhancing competitive advantage, stating that: “With this in mind, we have prioritized a strong push to expand our electronic banking services, investing significantly in this field. Our aim is to provide customers with a unique banking experience that enables them to complete most banking transactions wherever they are, whenever they want. Additionally, we are actively encouraging customers to increase their use of electronic payment methods, aligning with the broader national strategy and the policies of the Central Bank of Egypt.”

El-Tayeb concluded by emphasizing that NBK-Egypt is committed to supporting the global shift towards sustainable finance and the transition to a green economy. The bank actively supports environmentally friendly projects that promote sustainability and increasingly rely on renewable energy sources. Additionally, the bank is exploring solutions to mitigate the negative effects of climate change and reduce carbon emissions. Sustainable finance, he noted, has become one of the most critical tools for ensuring long-term financial stability.

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