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Kuwait: NBK Releases Its Annual Sustainability Report for 2020
03.07.2021National Bank of Kuwait (NBK) has issued its annual Sustainability Report for the year 2020 under the theme “Maintaining Course”, underscoring its leading role and institutional approach to integrate sustainability into systems for managing environment, social and governance (ESG) impacts.
In this fifth Sustainability Report, which is aligned with the guidelines of the Global Reporting Initiative (GRI), NBK shares its key sustainability-related accomplishments for 2020 through a proactive and comprehensive response to support customers, employees and its community in responding to the COVID-19 pandemic, as well as initiatives in environment, healthcare, social contribution, education and sports.
In developing this report, NBK continued to follow a stakeholder-focused and standards-aligned approach to sustainability. Accordingly, the report was developed with consideration given to a range of global and local sustainability frameworks and drivers, including the Global Reporting Initiative (GRI), UN Sustainable Development Goals (SDGs), and the Kuwait National Development Plan (KNDP).
NBK boasts its accomplishments over the past years towards achieving its sustainability pillars, and looks forward to continued progress in making ESG standards a basis for dialogue with customers, embedding sustainable finance in all its operations, and building sustainability as an integral part of its corporate culture.”
NBK strives to strengthen its position as a leading provider of sustainable banking services, and is committed to maintaining this approach. NBK has always defended the essential role of banking services in achieving the aspirations of individuals and companies, along with its rigorous approach in integrating ESG issues at the heart of its business.
The year 2020 has been one-of-a-kind for NBK, as COVID-19 presented a range of challenges, well-met by the coordinated efforts of NBK staff in every business unit.
NBK’s Resilience throughout COVID-19
The annual Sustainability Report highlights the bank’s response to the challenges brought about by the COVID-19 pandemic across its functions and operations.
NBK’s readiness and incisive early action helped manage the emerging COVID-19-related risks. Every department played a role in NBK rapidly implementing and scaling up digital solutions and electronic services for remote work and for security and continuity in financial services provision. NBK’s IT team supported the transition from on-site operations to a remote access infrastructure, enabling employees to work from home and to serve customers through virtual financial transactions. NBK also amplified customer support services to aid customers in this forced transition to mobile banking. Further, NBK leveraged all their social media channels and brand to inform, educate, and motivate both customers and community members regarding pandemic safety measures.
Internal Governance
The report summarizes NBK’s governance structure, Board of Directors (BoD), Board Committees, governance disclosures and compliance processes. It describes the bank’s ethical and transparent business practices, highlighting its code of conduct, commitment to human rights, prioritization of investor relations, and a range of ethical business areas that include anti-corruption, anti-fraud, and anti-money laundering.
NBK strengthened its commitment to the highest standards of governance by initiating the process to add two new independent members to the board of directors (completed this year), enhancing the role of the Risk and Compliance Committee in surfacing and managing a wide range of risks, and emphasizing its long-standing commitment to human rights by creating and approving a new Human Rights policy.
Enhancing Business Practices and Building a Richer Customer Experience
In 2020, because in-person visits to branches decreased 44% and use of mobile banking increased 41%, NBK implemented numerous initiatives and programs to build a satisfying customer experience within that new environment, including digital transformation infrastructural changes, local delivery banking, youth programs and discounts, partnerships with popular retail outlets, and social-media-mediated education and support for customers as they navigated the COVID-19 pandemic. Customer satisfaction remained essentially steady at 93% satisfaction despite the unprecedented changes forced by COVID-19.
Caring for People
Another key sustainability dimension reported for the previous year is the workplace, where the bank exhibits sustainable management of and engagement with its people. Some highlights this year include implementation and achievement of: dozens of leading-edge practices to support the health of employees in the midst of the pandemic; 72.7% Kuwaitization rate; 45.8% female employees’ proportion of the workforce, the highest among all regional banks; 51,924 employee training hours delivered; and the provision of NBK Clinic services to employees.
Impacting Community
NBK has a very long-standing commitment to being a responsible corporate citizen in the community, especially by giving back through contributions, awareness raising, and community engagements.
Social media was a vital tool for NBK in 2020, enabling virtual engagement with NBK’s community by achieving nearly 2 million engagements across their six major social media platforms.
The report outlines NBK’s social initiatives ranging from healthcare to COVID-19 awareness to education and youth, including the provision of around 375 volunteering hours by staff concerning COVID-19 awareness, and training 32 youth students through “Tamakan” career readiness program for fresh Kuwaiti graduates.
Managing Environment Impacts
The report highlighted the substantial progress made in reducing environmental impacts, including energy, water, waste and resource management, headquarter relocation, and the calculation of NBK’s footprint in terms of greenhouse gas (GHG) emissions. Because of both COVID-19 demand reductions and moving to the new green headquarters building, the bank achieved 70% and 80% reductions in their electricity and water consumption, respectively. NBK also both reduced paper use and recycled nearly 100 metric tons of paper, lowering their GHG emissions by 615 metric tons just from those two efforts alone. The bank also was able to recycle over 3,600 electronic devices.
It is worth mentioning that NBK is the first banking institution in Kuwait to issue a sustainability report highlighting the bank’s social, economic and environmental initiatives and the implementation of corporate governance principles in accordance with the standards of Integrated Reporting (IR) Framework and the Global Reporting Initiative (GRI).
The bank’s efforts in this regard over the past years were recognized by inclusion in the FTSE4Good Index and the Refinitiv AFE Low Carbon Select Index in MENA, in which NBK ranked first among regionals banks and Kuwaiti companies in terms of the index’s weight. In 2020, NBK also maintained its MSCI ESG Index rating at BBB.
Kuwait: NBK Posts Strong Net Profits of KD 575.6 Million in FY2025
28.01.2026National Bank of Kuwait (NBK) has announced its financial results for the financial year ended 31 December 2025.The Bank reported a net profit of KD 575.6 million (USD 1.9 billion), compared to KD 600.1 million (USD 2.0 billion) for the financial year 2024. Earnings per share (EPS) stood at 64 fils for 2025, compared to 66 fils for 2024.
Profit before tax increased by 5.4% on a year-on-year basis, reaching KD 734.6 million (USD 2.4 billion) at the end of 2025, compared to KD 696.8 million (USD 2.3 billion) in 2024.
Total assets as of December 2025 grew by 13.1% year-on-year, reaching KD 45.6 billion (USD 149.4 billion), while customer deposits grew by 14.0%, totaling KD 26.1 billion (USD 85.3 billion) by the end of 2025.
Meanwhile, Group loans and advances reached KD26.8 billion (USD 87.8 billion) by December 2025, reflecting a growth of 13.1% year-on-year. In the meantime, shareholders' equity also saw an increase, standing at KD 4.3 billion (USD 14.0 billion), up by 9.2% year-on-year.
In terms of distributions, the Board of Directors has proposed a cash dividend of 35 fils per share for the financial year 2025, equivalent to 53% of net profits. In addition, the Board has recommended the distribution of bonus shares at a ratio of 5%. These proposed distributions are subject to the approval of the Annual General Assembly (AGM).
A Prudent Approach
Commenting on the Bank's annual financial results, Mr. Hamad Al-Bahar, NBK Group Chairman, affirmed that, despite the challenges posed by the global economic environment in 2025, including the repercussions of geopolitical tensions, tariff pressures, and the accommodative trajectory of interest rates, the Bank succeeded in further consolidating its position as a leading financial institution. This performance was underpinned by a prudent operating approach and a flexible strategy anchored in diversification and financial discipline.
Al-Bahar noted that the Bank’s financial results for the year ended 31 December 2025 reflect NBK’s ability to adapt and navigate a wide range of economic conditions, supported by a diversified business model, a strong capital base, high-quality assets, comfortable liquidity position, and a robust governance and risk management framework.
He added that the Bank continues to successfully execute its strategy of balancing the delivery of superior returns to shareholders with meeting the evolving needs of its customers. He further emphasized that sustainability has become a central pillar of NBK’s long-term growth agenda. The Bank recorded a significant year-on-year increase of approximately 23% in the value of its sustainable assets, reaching USD 6.10 billion by the end of 2025. This represents 61% of its strategic 2030 target of USD 10 billion. Al-Bahar added that 2025 marked a year of significant achievements that further reinforced NBK’s position as the largest contributor to corporate social responsibility initiatives in Kuwait. Among the most notable milestones were the inauguration of the Shuwaikh Beach Development and Beautification Project, funded by the Bank at a cost of KWD 3 million, as well as the laying of the foundation stone for the expansion of the NBK Children’s Hospital for Hematology, Oncology, and Stem Cell Transplant. The expansion includes the construction of a new building at an estimated cost of nearly KWD 19 million.
Solid Operating Performance
Meanwhile, Mr. Isam J. Al-Sager, NBK Group Vice Chairman and CEO, said: “The Group’s 2025 results reflect the solid operating performance delivered across its various business segments, led by its core banking activities, despite the volatile global operating environment and its spillover effects on regional and local markets. During the year, the Group recorded a year-on-year growth of 3.6% in net operating income, reaching KWD 1.3 billion (USD 4.2 billion).”
He noted that the Group’s profit before tax recorded a year-on-year increase of 5.4% in 2025, while net profits were impacted by the application of the domestic top-up minimum tax on multinational entities operating in Kuwait. He emphasized that this impact on profit growth is transitional in nature, reflecting the base-year effect of 2025 as the first year of the tax’s implementation.
Al-Sager emphasized that NBK Group’s diversified business mix, carefully calibrated strategic investments, and disciplined risk management have mitigated the impact of adverse global economic conditions. He added that NBK continues to invest in technology and innovation as fundamental pillars of inclusive and sustainable growth, while also expanding its customer base and capitalizing on opportunities across promising markets and key sectors.
He further noted that, throughout 2025, the Bank continued to roll out innovative banking services and products specifically designed to meet the evolving needs of its customers. In addition, the Group’s Consumer and Digital Banking arm launched its new five-year strategy through 2030, marking a strategic shift from mere digitization of services to a fully customer-centric, underpinned by data collection and advanced analytics. This transformation further reinforces NBK’s leadership position locally and regionally, offering an exceptional banking experience.
Furthermore, Al-Sager pointed to the key contribution of both NBK Group’s corporate banking and international operations, as well as Boubyan Bank— the Group’s Islamic banking arm— in strengthening the Group’s profits. He further highlighted that NBK Wealth has continued to consolidate its position as the largest wealth management entity in Kuwait and among the largest in the region, by offering an integrated suite of private banking, investment management, and advisory services through a globally connected network of operations.
On major financing transactions, Al-Sager stated: “During 2025, NBK led a KWD 1.5 billion syndicated term facility with Kuwait Petroleum Corporation (KPC). This transaction represents the largest financing of its kind denominated in Kuwaiti Dinars. The Bank served as the mandated lead arranger and bookrunner for the facility, as well as the agent for the conventional tranche. NBK’s share amounted to KD 495 million of the total financing, making it the largest contributor among all participating conventional and Islamic banks, accounting for approximately 60% of the KD 825 million conventional tranche.”
Al-Sager noted that this transaction reinforces NBK’s position as the largest financier of Kuwait’s oil sector and the primary banking partner for energy companies in supporting their expansion and growth plans.
He further noted that Kuwait Clearing Company’s selection of NBK as the country’s main settlement bank represents a testament to the Bank’s substantial investments in digital infrastructure and its high level of operational readiness. This milestone further strengthens NBK’s role in advancing the development of Kuwait’s capital market infrastructure.
On the sustainability front, Al-Sager affirmed that NBK continues to deepen its leading role in shaping a more sustainable future through its green financing initiatives and the development of products and solutions that reflect global best practices in sustainable finance. In this context, he pointed to the Bank’s signing in 2025 of Kuwait’s first-ever green loan agreement. He also highlighted NBK’s ongoing efforts to strengthen its environmental, social, and governance (ESG) framework through measurable initiatives that support emissions reduction and the achievement of carbon neutrality by 2060.
The Operating Environment
Al-Sager expressed his optimism regarding an improvement in the domestic operating environment in 2026, supported by a number of key factors.
He explained that the Financing and Liquidity Law enacted in 2025 has established an advanced framework for long-term sovereign debt issuances, thereby enhancing banking system liquidity through high-quality sovereign assets and supporting the financing of large-scale projects. He added that the Real Estate Financing Law—once approved—would enable banks to provide long-term financing for the residential sector, helping address the housing challenge and stimulating activity across construction and real estate–related sectors.
Moreover, Al-Sager noted that the value of government-awarded projects in 2025 exceeded KWD 4 billion, surpassing 2024 levels by well over 60%. Meanwhile, bank credit recorded solid performance, with credit to residents growing by approximately 7.63% year-on-year as of the end of December 2025, the fastest pace since 2023.
He indicated that project awards are expected to gain further momentum in 2026, supported by the broad pipeline of initiatives under the government’s capital projects program across multiple sectors, alongside a gradual pace of interest rate cuts. This combination bodes well for the outlook and is set to create a favorable environment for credit growth for both corporates and individuals during the year.
He emphasized, however, that while the domestic outlook remains positive, it is accompanied by certain regional and global challenges, including persistent geopolitical tensions, tariffs, and their associated negative economic repercussions.
Prestigious Awards
During 2025, NBK further consolidated its leadership position by receiving a series of prestigious awards from leading global institutions and publications.
Among these accolades, MEED named NBK Best Retail Bank and Best SME Bank in Kuwait, in addition to awarding the Bank several regional honors across the Middle East and North Africa, including Best Loan Offering, Best Contactless Payment Experience, and Best Payment Solutions for SMEs. NBK’s digital subsidiary, Weyay Bank, was also recognized with the Most Innovative Product Award for its children’s card, “Jeel.”
NBK also received three prestigious awards from Global Finance, including Best Digital Payment Solutions and Best Online Product Offerings in Kuwait, while Weyay Bank was named Best Digital Bank in Kuwait. Furthermore, the Bank won four awards from Euromoney, including Kuwait’s Best Bank for ESG, Kuwait’s Best Bank for Large Corporates, Kuwait’s Best Bank for Diversity and Inclusion, as well as Kuwait’s Best Digital Bank for Weyay Bank.
Key financial indicators for the financial year ended December 31, 2025
• Net operating income stood at KD 1.3 billion (USD 4.2 billion), up 3.6% year-on-year
• Total assets grew by 13.1% year-on-year, at KD 45.6 billion (USD 149.4 billion)
• Total loans and advances increased by 13.1% year-on-year to KD 26.8 billion (USD 87.8 billion)
• Customer deposits grew by 14.0% year-on-year to KD 26.1 billion (USD 85.3 billion)
• Total shareholders’ equity amounted to KD4.3 billion (USD 14.0 billion), registering an annual growth of 9.2%.
• Strong asset quality metrics, with NPL/gross loans ratio at 1.36% and an NPL coverage ratio of 240%
• Robust Capital Adequacy Ratio of 17.0%, comfortably exceeding regulatory requirements.