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Egypt: NBK-Egypt Wins the BT100 Award for 2020

National Bank of Kuwait - Egypt (NBK- Egypt) received the BT100 Award as  "Best bank providing digital Ecosystem” for 2020, during the ceremony hosted, for the fourth year in a row, by Business Today Magazine, one of the powerful media arms of Egyptian Media Group (EMG) in cooperation with POD Egypt, the leading public relations and media company as well as Youm7 media institution, to honor the 100 key influential entities and individuals in Egypt for 2020 under the patronage of HE Dr. Mostafa Madbouly – the Prime Minister.

The event was held on Tuesday, 30 March 2021, at the Nile Ritz-Carlton Hotel in the presence of a large number of ministers, senior officials, businessmen and executives of banks and companies operating in the Egyptian market, as well as a group of public figures and community celebrities.

The ceremony, themed “The Year of Inspiration” this year, was attended from NBK-Egypt’s side by Mr. Yasser El-Tayeb, NBK - Egypt Vice Chairman, Managing Director & CEO, Mr. Amr El Alfy, Head of Business Group at NBK – Egypt, Mrs. Salma Abou Hussein, Head of Consumer Banking at NBK-Egypt, and a number of the bank’s top management team.

The award winners are selected according to market studies based on the criteria for evaluating the performance of companies operating in the various sectors of the market, through a panel of economic experts and researchers.

The award presented to the bank was received by Mr. Amr El Alfy on behalf of Mr. Yasser El-Tayeb.

On this occasion, Mr. Yasser El-Tayeb said that honoring the bank in this ceremony and presenting it the award of "Best bank providing digital Ecosystem” for 2020 come in recognition of its instrumental role as one of the key players in the Egyptian economy, and in appreciation of its support for the digital transformation system, whether inside or outside the bank during 2020, in light of the COVID-19 crisis, which negatively impacted all economic sectors, not only in Egypt but worldwide. However, this crisis and the resulting repercussions gave the best testament to the readiness of the Egyptian economy and its economic institutions and their ability to overcome all challenges and aptly weather crises. This was clearly seen in NBK-Egypt’s financial indicators and business results for 2020, which showed its resilience to all the challenges caused by the COVID-19 crisis, by continuing to achieve good performance ratios, and remaining one of the top banks continuing effective steps towards transition to a digital economy, which has become a more pressing need after the COVID-19 pandemic.

Over the recent past years, the bank adopted a clear strategy promoting digital transformation projects, whether inside or outside the bank, in line with the directions of the government and the Central Bank of Egypt for transformation into a society less dependent on cash and evolving into a digital economy, being one of the goals of the sustainable development strategy embedded in Egypt Vision 2030, the path on which the bank has taken remarkable steps over the recent past years,” added El-Tayeb.

On his part, Mr. Amr El Alfy said: “NBK - Egypt was one of the first banks operating in Egypt to embrace digital transformation projects, stemming from the belief in the key role of technological solutions and alternative channels in the banking sector, and realizing their importance to enhance the competitive advantage over other banks, and to establish “the one bank concept” for customers, especially, as we strive to acquire a larger share of the Egyptian market, both in corporate and retail sectors, in the coming period.”

El Alfy added that the bank’s corporate customers had an important share of the bank’s digital services, as the bank launched "NBK Online Corporate Banking", which enables them to easily and securely manage the business activities and banking transactions of their companies online, without the need to visit the branches, by following simple steps to view the company's accounts and balances and manage them in an easy and secure manner.
From her side, Mrs. Salma Abou Hussein expressed her pleasure with the bank’s winning of the award, which shows the appreciation of the awarding entity for the effective role played by NBK- Egypt in the areas of digital transformation and digital banking, which the bank has been keen to adopt since a while by launching “NBK -Egypt Online Banking” enabling customers to make a variety of banking transactions in a simple and secure way, without the need to visit the branch for every transaction. The bank also launched “NBK Mobile Banking App” allowing customers to avail various banking services that became at their fingertips, anytime, anywhere.

The bank also launched its e-Wallet, offering customers a unique banking experience in terms of convenience and security.”
Abou Hussein pointed out that the bank also recently launched “Meeza” Prepaid Card, which is a new addition to NBK-Egypt’s array of cards, making the bank a main operator in the Egyptian market offering the smart payment card bearing the logo of Electronic Payment Network "Meeza", which is used by companies to pay employees’ salaries.

As a culmination of the bank's digital banking services, we have recently launched the digital transformation system for Heliopolis Sporting Club using HSC smart card, enabling the club members, at both Heliopolis and El Shorouk City branches, to enjoy various features and services inside and outside the club, as the membership card was revamped to double as an e-payment card, offering a locally unique experience based on cutting-edge technology that combine more than one use in one card, she added.

It is worth mentioning that NBK-Egypt has a network of 53 branches with strategic locations across the different governorates and cities of Egypt including Cairo, Giza, Alexandria, Delta, Sinai, Red Sea, Upper Egypt, and the industrial areas in the 6th of October and the 10th of Ramadan Cities. The bank is also privileged to be among the banks providing Islamic banking products, in addition to conventional products, through its dedicated Islamic banking branches. The bank also has a large network of ATMs across key locations of the country to service the bank’s customers around the clock.

Egypt: NBK-Egypt reports EGP 4.021 billion (Equivalent to KWD 41.4 million) in net profit in FY2023

National Bank of Kuwait - Egypt (NBK-Egypt) has announced net profits of EGP 4.021 billion (Equivalent to KWD 41.4 million) for the financial year 2023, a significant increase from the EGP 1.826 billion (Equivalent to KWD 30.7 million) reported in 2022, showcasing an impressive annual growth rate of 120.21%.

Net Operating Income stood at EGP 8.66 billion, recording a substantial increase of 87.04% from the EGP 4.63 billion recorded in 2022. In the meantime, Net Interest Income jumped by 82.51%, reaching EGP 6.99 billion compared to EGP 3.83 billion in 2022.

On the other hand, Net Operating Income (excluding interests) increased to EGP 1.67 billion in 2023, compared to EGP 0.8 billion in 2022, up by 108.75%, while Cost to Net Operating Income dropped from 37.14% in 2022 to 28.02% in 2023.

Total assets reached EGP 130.61 billion in 2023, up by 24.22% compared to the year-end balance of EGP 105.14 billion in 2022. Furthermore, the net balance of loans and credit facilities expanded to EGP 76.06 billion 2023, reflecting a growth rate of 38.42% compared to EGP 54.95 billion recorded at the end of 2022. Moreover, customer deposits continued to grow, rising by 25.42% to reach EGP 105.93 billion in 2023, compared to EGP 84.46 billion by the end of 2022.

The Return on Average Assets (ROAA) surged from 2% at the end of 2022 to 3.4% at the end of 2023, while the Return on Average Equity (ROAE) increased from 16.9% at the end of 2022 to 30.7% by the end 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: “In 2023, NBK- Egypt achieved its highest annual profits to date, accompanied by record growth rates. This success is credited to a strong operational performance, highlighting the resilience of our financial position and the flexibility of our business model, which allows for profit generation despite operational challenges.

“At NBK - Egypt, our objective is to enhance banking transactions and elevate their quality to meet growing market demand. We pursue this goal by focusing on the advancement of our digital services, leveraging the expertise and excellence of the Group in this domain. Additionally, we aim to expand our loan portfolio for SMEs, broaden the scope of our operations, and diversify them to encompass a wider geographical reach and cater to various customer segments,” Al-Bahar added.

Al-Bahar emphasized that Egypt stands as one of the key strategic markets for fostering the Group's business growth, consistently regarded as the second domestic market. Being the largest Kuwaiti investment in Egypt, the bank holds a significant presence in the Egyptian banking sector, evident in its rapid growth trajectory and strong financial performance. The Bank's positive momentum underscores its commitment to expanding further and strengthening its market position.

Al-Bahar also highlighted that the Group perceives the Egyptian market as a strategic long-term investment. Given that the Egyptian economy ranks among the largest in the region, it holds substantial growth potential once it regains momentum.

She further emphasized that Egypt represents a significant growth market, and that the Bank is committed to its continuous expansion. The operations in Egypt continue to be among the most profitable within the Group, boasting the highest rates of return on shareholders' equity and assets.

“As geopolitical tensions in the region subside, economic recovery efforts will receive a significant boost. By restoring confidence in the economy and currency, substantial opportunities will emerge. We maintain an optimistic outlook on future prospects, buoyed by the momentum generated from the Egyptian government and the Central Bank of Egypt's reform and exceptional measures,” Al-Bahar confirmed.

Meanwhile, Vice Chairman, CEO, and Managing Director of National Bank of Kuwait-Egypt, Mr. Yasser El-Tayeb, said: “The robust financial results and key indicators serve as the most compelling evidence, showcasing the Bank's capacity to maintain growth and attain favorable business outcomes throughout 2023, notwithstanding the unprecedented challenges faced both locally and globally. These challenges include the aftermath of the Russian-Ukrainian conflict, the Gaza war, import crises, and fluctuations in the foreign exchange rate against the Egyptian pound”.

El-Tayeb emphasized that NBK-Egypt maintains a well-balanced distribution of revenues 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.

El-Tayeb further explained that the majority of NBK's income sources in Egypt are 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.

Al-Tayeb also emphasized the Bank's firm belief in the pivotal role of technological advancements and electronic channels within the banking sector. Recognizing their significance in bolstering competitive advantages among banks, we, at NBK-Egypt have prioritized a robust expansion of our electronic banking services, making substantial investments in this area. Our ultimate goal is to provide customers with an exceptional banking experience, offering a unique facility that enables them to conduct the majority of their banking transactions conveniently, anywhere, anytime. Furthermore, we aim to encourage customers to utilize electronic means and channels for payments, aligning with the broader policy objectives of the state and the Central Bank of Egypt in this regard.

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.

In terms of the bank's social responsibility, Al-Tayeb highlighted that since NBK Group entered the Egyptian market in 2007, NBK-Egypt has remained dedicated to serving the Egyptian community. This commitment is demonstrated through the support, donations, and contributions extended to numerous charitable organizations. Additionally, the Bank actively collaborates with reputable civil society institutions, establishing partnerships aimed at becoming the operational arm of the Bank's development initiatives.