Since its incorporation in 1952 as Kuwait’s first indigenous bank and the first shareholding company in the entire Gulf region, NBK has been known as ‘The Bank You Know and Trust’. Thanks to the recognized excellence of its very stable management along with its unequivocal strategy, consistent profitability, high asset quality and strong capitalization, NBK, throughout the years, succeeded in building an advanced banking institution that offers a full spectrum of innovative and unrivalled financial and investment services and solutions to individual, corporate and institutional clients. NBK enjoys a dominant market share with a large and ever-expanding local and regional clientele. NBK also boasts Kuwait’s largest overseas branch network spanning many of the world financial and business centers.
Vision & Mission
The NBK vision is to be the trusted bank of choice, building on our core values, people and expertise.
To deliver world-class products and the highest quality service to our customers.
To attract, develop and retain the best banking talent in the region.
To support the communities in which we operate.
To adhere to our core values of passion, integrity, conservatism and knowledge.
In following our mission, we believe that we will be able to achieve consistently superior returns to our shareholders.
The National Bank of Kuwait (NBK) was established in 1952 when a prominent Kuwaiti merchant went to the British Bank of the Middle East to open a letter of guarantee for the amount of 10,000 Indian rupees, (which is equivalent today to 750 KD). Much to his surprise, his request was rejected, on the condition that he provide a guarantor. This well-known merchant was shocked and appalled by the treatment that he had received, and news of this was all over town.
This incident gave rise to the question and the idea of having a Kuwaiti bank with a mission to serve citizens’ needs as its priority, stimulate the economic growth of the country, and look after the savings of its clients. In fact, a meeting was held with the late Amir of Kuwait, H.H. Sheikh Abdullah Al-Salem Al-Sabah, who congratulated them on the idea and promised them his complete support. An Amiri decree was issued on May 19, 1952 to open the National Bank of Kuwait, and NBK started operations on November 15th 1952.
The founders of NBK are:
• Khalid Zaid Al-Khalid
• Ahmed Saud Al-Khaled
• Khalifa Khalid Al-Ghunaim
• Khaled Abdullatif Al-Hamad
• Sayed Ali Sayed Sulieman Al-Rifai
• Yousef Abdulziz Al-Fulaij
• Yousef Ahmed Al-Ghanim
• Mohamed Abdulmohsen Al-Khorafi
• Abdulaziz Hamad Al-Sager
NBK was the first national bank in Kuwait and the entire Arabian Gulf region. All the board members and the founders of NBK were renowned merchants of Kuwaiti origin. NBK was established with a capital of 13,100 shares, each valued 1,000 Indian rupees – equivalent to 75 Kuwaiti dinars today. Over the years NBK has proved itself to be a financial leader in the Arab world.
On behalf of the Board of Directors, I am pleased to introduce the National Bank of Kuwait’s 2017 Annual Report, on the occasion of our 65th Anniversary. The year saw another strong performance by the Bank, in which we increased profitability across the Group, while maintaining a leadership position in our home market of Kuwait. Our operations are reviewed in more details on the following pages, and it will be apparent to readers that our commitment to truly integrated banking solutions for our customers around the world is stronger than ever.
The economic environment
NBK continued to benefit from Kuwait’s economy, which remains largely influenced by public sector spending. With the lowest industry break-even oil prices in the GCC, the Kuwaiti government has maintained spending on the Oil and Gas sector – and while still primarily reliant on oil revenues, the country is experiencing a growing GDP contribution from other industries. NBK has participated in financing for most of the country’s major public/private projects, in Oil and Gas as well as other sectors. Kuwait’s leadership has a clear plan for the future - ‘New Kuwait 2035’ - and NBK is proud of the role it is playing to support this development program. The country remains a financial safe haven in a region experiencing both economic and political uncertainty. This is borne out by the strong sovereign ratings that have been issued by Moody’s, Standard & Poor’s and Fitch.
NBK at 65: a year of innovation
NBK has a long, established and celebrated track record for stability and conservatism. But this reputation does not preclude innovation for driving future growth. In 2017, the Bank’s leadership and staff made considerable progress in the enhancement of internal technology and systems, as well as in the roll-out of industry-leading digital and smart banking platforms that directly benefit customers. Through constant innovation, NBK secures its future, and ensures both the acquisition and retention of customers. Innovation and development are made possible by the people behind them. During the year we maintained our commitment to professional training, development and succession planning. This means we can be sure that – across the Bank – we have the right talent in the right place for the challenges ahead. Innovation is also apparent in the way we run our business, particularly at an international level. This year we successfully strengthened the synergies between our global branches, improving connectivity and ultimately delivering a more complete customer experience.
The Board of Directors continued to perform its duties in 2017. NBK’s Ordinary (AGM) and Extraordinary (EGM) General Assembly meeting for 2016 was held on 11 March 2017, at which there was a quorum of 79.52%. The AGM and EGM approved the Board of Directors’ recommendations to distribute a cash dividend to shareholders equivalent to 30 fils per share. No changes were made to the composition of the Board of Directors or its Committees in the course of the year. The Board and its Committees held a total of 70 meetings during 2017.
Creating shareholder value
NBK’s total market capitalization as at 31 December 2017 was KD 4.2 billion. The Board of Directors will recommend a dividend distribution of KD 174.5 million, which is equivalent to 30 fils per share, at the Annual General Meeting to be held in March 2018. In addition, the Board has also recommended the distribution of a 5% bonus share (five shares for every 100 shares owned) for the year 2017. The proposed cash dividends represent 54.1% of NBK Group’s Net Profit for the year.
Valuing all stakeholders
I would like to extend my sincere thanks to the NBK Group Board of Directors for their wise counsel and leadership. On behalf of the Board, I would like to record our thanks to NBK’s Executive Management, who have not only worked tirelessly in discharging their duties, but have devised an innovative strategy that will ensure the Bank’s continued growth. I am particularly grateful to our customers in Kuwait, across the Middle East and around the world for their loyalty and ongoing support. Our gratitude is due to employees of NBK across the world, who make the experience of our customers so rewarding, as well as to Kuwait’s Central Bank and Capital Markets Authority, who continue to steer our industry on its steady path. I would, lastly, like to thank our shareholders for their ongoing commitment to – and support for – NBK. With the successes of the last 65 years in mind, I am confident that we have a bright future ahead.
Nasser Musaed Abdulla Al–Sayer
Chairman of the Board of Directors
Board Of Directors
Mr. Nasser Musaed Al-SayerChairman
Mr. Ghassan Ahmed Al-KhalidVice Chairman
Mr. Hamad Abdul Aziz Al-SagerBoard Member
Mr. Yacoub Yousef Al-FulaijBoard Member
Mr. Hamad Mohamed Al-BaharBoard Member
Mr. Muthana Mohamed Ahmed Al-HamadBoard Member
Mr. Haitham Sulaiman Al-KhaledBoard Member
Mr. Loay Jassim Al-KharafiBoard Member
Mr. Emad Mohamed Al-BaharBoard Member
Mr. Isam J. Al-SagerGroup Chief Executive Officer
Ms. Shaikha K. Al-BaharDeputy Group Chief Executive Officer
Mr. Salah Y. Al-FulaijChief Executive Officer – Kuwait
Mr. Sulaiman Barrak Al-MarzouqDeputy CEO - Kuwait
Mr. Georges RichaniCEO - International Banking Group
Mr. Jim MurphyGroup Chief Financial Officer
Mr. Parkson CheongGroup Chief Risk Officer
Mr. Mustafa El-GendiGeneral Manager – Corporate Banking Group
Mr. Pradeep HandaGeneral Manager – Foreign Corporate, Oil and Trade Finance Group
Mr. Mohammed Al OthmanGeneral Manager – Consumer Banking Group
Mr. Malek KhalifeHead of Global Private Banking for NBK Group
Mr. Emad Al-AblaniGeneral Manager – Group Human Resources
Mr. Dimitrios KokosioulisDeputy Chief Executive Officer - IT & Operations Group
Mr. Carl AingerGroup Chief Internal Auditor
Dr. Soliman Abdel-MeguidGeneral Counsel – Head of Legal Affairs Group
Dr. Saade ChamiGroup Chief Economist - Economic Research
Awards & Recognition
Best Mobile Banking App - Consumer in Kuwait
Best Consumer Digital Bank in Kuwait
Best in Mobile Banking - Consumer in Kuwait
2008 - 2018
Best Trade Finance Bank in Kuwait
2015 - 2018
Best Private Banking in Kuwait
2006 - 2018
World’s Top 50 Safest Banks for 13 consecutive times
2013 - 2018
Best Foreign Exchange Provider in Kuwait
2013 - 2017
Best Foreign Exchange Provider in the Middle East
2014 - 2018
Best Bank in Kuwait
2010 – 2016
Best Emerging Market Bank in Kuwait
Best Bank for Financial Risk Management Kuwait
Best Bank for Financial Risk Management Middle East
Best Innovator in Trade Finance
Best Bank in the Middle East
2010 – 2013, 2015
Best Emerging Market Bank in the Middle East
Best Provider of Money Markets Fund in the Middle East
Best Cash Management for Non-Financial Institutions
1994 – 2018
Best Bank in Kuwait
2006, 2009, 2015 - 2018
Best Private Banking in Kuwait
2007, 2008, 2010, 2011, 2013
Best Bank in the Middle East
2012 – 2013
Best Managed Company in the Middle East
Best Investment Bank in Kuwait
Outstanding Contribution to Middle East Banking
2014, 2015 & 2017
Best Bank in Kuwait
2007, 2008, 2010, 2011, 2013, 2015 - 2018
Bank of The Year - Kuwait
2007, 2008, 2010, 2011
Bank of The Year - Middle East
Best Customer Service and Project Finance in the Middle East
Best Deal of the Year in the Middle East
2001, 2002, 2004, 2005, 2007
Best Deal of the Year in Kuwait
Number 1 Banking Brand in Kuwait