
Kuwait: NBK Reports KD 134.2 Million in Net Profit for the First 3 Months of 2023
18.04.2023National Bank of Kuwait (NBK) has announced its financial results for the three-month period ended 31 March 2023.The Bank reported a net profit of KD 134.2 million (USD 437.8 million), compared to KD 116.6 million ($380.3 million) for the corresponding period in 2022, improving by 15.1% year-on-year.
Total assets as of the end of March 2023 grew by 8.2% year-on-year to reach KD 36.5 billion (USD 118.9 billion), whereas total loans and advances increased by 5.7% year-on-year to KD 21.2 billion (USD 69.1 billion), while shareholders’ equity reached KD 3.5 billion (USD 11.5 billion), growing by 3.5% year-on-year.
Commenting on the bank’s 1Q2023 financial results, Mr. Hamad Al-Bahar, NBK Group Chairman, said: “NBK delivered as strong performance in the first quarter of 2023, building on the momentum of our exceptional performance in 2022, despite the challenging global economic environment, including geopolitical tensions, persistent inflation and the banking crisis in Europe and the United States”.
Al-Bahar highlighted that NBK's balance sheet is robust, with a solid and stable capital base, supporting the Bank's ability to meet the expanding customer needs while maximizing shareholder returns. He added that in 2023, NBK would continue to invest strategically in its people, and its digital capabilities to ensure the bank's future success.
Al-Bahar also emphasised NBK's unwavering dedication to sustainability, which enhances prospects for long-term growth and reinforces the Bank's position as a leader in the region. He noted that NBK is actively implementing various initiatives that promote responsible business practices and contribute to the sustainable development of Kuwait's economy. One of the Bank's recent endeavors in this regard was joining the United Nations Global Compact, the world's largest corporate initiative advancing sustainable and socially responsible business practices.
Meanwhile, Mr. Isam J. Al-Sager, NBK Group Vice Chairman and CEO, said: “We saw a robust start into 2023 marked by substantial increases in both revenue and profit, sustained exceptional operational performance across our business, and ongoing advantages derived from our diverse business model and strategic investments in talents and technologies.”
Despite the political volatility in Kuwait, Al-Sager pointed out that the operating environment remained stable during the first quarter of 2023.
He emphasized the impressive performance of NBK's core business activities during the current quarter, as well as significant advancements in strategic segments such as wealth management, underlining that the bank's success is built upon a foundation of prudent risk management and a steadfast commitment to maintaining high credit quality. Al-Sager also reaffirmed that these strengths will be leveraged to drive value and growth throughout 2023, as NBK remains dedicated to creating added value for its shareholders.
“During the first quarter of the year, the drivers of operational activities continued to demonstrate positive progress, and higher interest rates played a significant role in the robust growth of net interest income,” Al-Sager confirmed.
“The group's net operating revenues rose by 18.4% year-on-year, reaching KD 277.9 million (USD 906.4 million), driven by overall revenue improvement stemming from the diversified revenue stream across various business sectors,” Al-Sager added.
“In 2023, our focus remains on investing in the future, with a strategic emphasis on enhancing our digital capabilities to provide unparalleled experience to our clients. This includes the development of innovative products and solutions aimed at making banking easier and more convenient for consumers, in order to meet their evolving demands,” Al-Sager noted.
“Our consistent track record of delivering long-term results speaks for itself, and we remain committed to enhancing operational efficiency and maintaining prudent capital management practices. This strategic focus ensures that we are well-prepared to navigate any potential scenarios in the global economy,” Al-Sager confirmed.
“Leveraging our robust balance sheet, we are well-positioned to continue to evolve into the bank of the future, delivering value to our customers, communities, and shareholders. With the support of our solid financial position, strong capitalization rates, and ample liquidity levels, we are positioned for sustained earnings growth.” Al-Sager explained.
“We, at NBK, take pride in our meaningful contributions to our communities and the significant progress we have made in advancing sustainability across our operations and corporate culture through various initiatives. This includes our commitment to achieve carbon neutrality by 2060 and reduce operational emissions by 25% by 2025, as we continue to strengthen the pillars of sustainability across our organization,” Al-Sager confirmed.
Al-Sager pointed out that NBK has recently received a score of ‘C’ from CDP, a global non-profit that runs the world’s leading environmental disclosure platform, for its Climate Change and Forests 2022 Categories.
“As pioneers in our industry, we recognize the importance of setting an example of responsible leadership that drives long-term growth. We believe that our commitment to sustainability and responsible business practices is crucial in contributing to a better future, and we strive to lead by example in our pursuit of sustainable growth,” Al-Sager concluded.
Key financial indicators for 1Q2023
• Net operating income of KD 277.9 million (USD 906.4 million), up 18.4% year-on-year
• Total assets grew by 8.2% year-on-year, at KD 36.5 billion (USD 118.9 billion)
• Customer loans and advances grew by 5.7% year-on-year to KD 21.2 billion (USD 69.1 billion)
• Customer deposits increased by 11.6% year-on-year to KD 20.4 billion (USD 66.7 billion)
• Strong asset quality metrics, with NPL/gross loans ratio at 1.55% and an NPL coverage ratio of 245%
• Robust Capital Adequacy Ratio of 17.1%, comfortably in excess of regulatory requirements

Kuwait: Al-Sager: NBK Achieved Record Profits, Leveraging a Strategic Expansion
04.02.2025Mr. Isam Al-Sager, Vice Chairman and Group Chief Executive Officer of National Bank of Kuwait (NBK), announced that the Group achieved a record net profit of KD 600.1 million for 2024, marking its highest-ever annual performance. He credited the 7% profit increase compared to the previous year to the Group's exceptional operating performance and the ongoing expansion of its diversified business model.
In an interview with CNBC Arabia, Al-Sager attributed the robust net profit performance to increased business volume and the relatively high average interest rates throughout much of 2024, compared to 2023. He also highlighted the strong performance of fees and FX income across various business sectors and regions where the Group operates.
Al-Sager explained that in 2024, NBK Group saw an 8.3% year-on-year growth in net interest income, while operating income rose by 7.2% to KD 1.3 billion. He attributed this positive performance to the strong growth in the Group's loan portfolio, which expanded by 6.4% compared to 2023. This growth was seen across both domestic and international markets, encompassing both conventional and Islamic banking services.
“We have consistently upheld healthy levels of cost of risk, primarily driven by a 16% decrease in provisions for credit provisions and other impairments in 2024. The Group remains committed to its prudent approach in managing credit exposure,” Al-Sager noted.
International Operations & Wealth Management
Al-Sager highlighted the strong performance of NBK Group's international operations and wealth management, emphasizing the Group's distinctive advantage among Kuwaiti banks. He noted the strategic geographical spread through international banking services, along with the ability to conduct business in both Conventional and Islamic Banking.
He further noted that in 2024, the International Banking Group (IBG) contributed 24% of the Group’s net operating income and 23% of its profits, underscoring the robust performance across these segments.
Additionally, NBK Wealth contributed 9% to operating income and 11% to profits, reinforcing the effectiveness of the Group’s strategic diversification efforts.
The Future Outlook
Al-Sager conveyed a confident outlook for NBK's performance in 2025, driven by several pivotal factors. He underscored the influence of monetary and fiscal policies, notably the anticipated gradual pace of interest rate cuts, which are poised to support margins. Furthermore, he emphasized the ongoing momentum in projects award in Kuwait and the favorable climate for the enactment of several crucial economic laws, all of which are anticipated to further bolster the local operating environment.
Interest Rate Trajectory and Margin Impact
In response to a question about interest rates and their impact on margins, Al-Sager stated, “With uncertainty surrounding the scale of future rate cuts, intensifying competition, and a challenging global operating landscape, we anticipate some pressure on margins. Consequently, we expect net margins in 2025 to edge slightly lower, by a few basis points, compared to year-end 2024 levels.”
“However, it is important to consider that the expansion in business activity driven by a low-interest-rate environment could help offset margin pressures. With a well-diversified business model and an increased focus on fee-based income, we continuously hedge against interest rate fluctuations, ensuring resilience in varying market conditions,” Al-Sager explained.
Market Consolidation and Its Implications
Assessing the impact of ongoing mergers in the Kuwaiti banking sector, Al-Sager stated: “As one of the largest banks in the region, NBK is well accustomed to operating in highly competitive markets. However, these dynamics do not impose any pressure on us, as we remain steadfast in pursuing our strategic objectives.”
“We are years ahead of the current wave of mergers, having successfully expanded through strategic acquisitions in earlier growth phases. These expansions strengthened our business diversification and service integration. Today, we are capitalizing on the success of our expansion strategy, having mitigated the risks of business consolidation and sharpened our focus on delivering exceptional services across all the markets in which we operate,” he added.
Al-Sager emphasized that banking mergers are often followed by challenges that can provide NBK with opportunities to seize.
He further emphasized NBK Group’s commitment to expanding its presence in regional markets, reaffirming its readiness to pursue acquisition opportunities that strengthen service integration and drive added value for shareholders.
Projects Award
Commenting on the projects market in Kuwait, Al-Sager expressed optimism due to the strong activity in the market, noting that the awarding of development projects by the end of 2024 reached its highest level in nearly eight years. He anticipates this momentum to persist into 2025.
He emphasized the widespread consensus on the importance of prioritizing major development projects and enhancing Kuwait's appeal as an investment hub. This includes the urgent need to approve a set of long-awaited laws that would align with and support ongoing economic reform efforts.
“With decision-making now solely in the hands of the government, we no longer face the disruptive entanglements of the past, and this will positively impact the anticipated economic reforms,” Al-Sager noted.
“We are witnessing meaningful discussions on the adoption of key laws, such as the real estate financing and public debt laws. The enactment of these laws would serve as a crucial catalyst, driving the Kuwaiti economy toward smoother and faster growth,” He stated.
Multinational Corporate Tax
Commenting on Kuwait's recent enactment of the Domestic Minimum Top-Up Taxes (DMTT) on multinational enterprises (MNEs), effective 2025, Al-Sager explained that this corporate tax follows a global standard already in place in many countries where NBK Group operates. He emphasized that its local implementation would benefit Kuwait by ensuring these revenues stay within the country, rather than flowing to other nations.
In response to a question regarding the potential impact of the tax implementation on the bank’s profits, Al-Sager stated: “Naturally, there will be an impact on our profits in 2025, with an anticipated increase in the tax applied to the Group’s profits by approximately 8 to 15%. However, this impact is expected to be temporary, as the base year 2025 marks the introduction of the tax.”
Real Estate Financing Law
Commenting on the Real Estate Financing law, Al-Sager stated: “We view the real estate financing law, or housing finance, as the most effective practical solution to Kuwait's housing crisis. With over 97,000 pending housing applications at the Public Authority for Housing Welfare and approximately 10,000 new applications each year, this issue has only intensified without any tangible resolution.”
He highlighted the recent positive developments supporting the adoption of the law, noting that this comes at a time when the government has clearly stated that refinancing Kuwait Credit Bank is challenging due to the anticipated ongoing budget deficit. He also emphasized that the Kuwaiti banking system is in an excellent position, with high levels of liquidity and capitalization, and is well-equipped to play a crucial role in addressing the housing issue.
Al-Sager expressed strong confidence that the right legislative and regulatory framework will empower banks to take a central role in resolving the housing crisis, using financing mechanisms akin to those in neighboring markets. He highlighted this as a major growth opportunity for Kuwaiti banks, especially given the substantial backlog of housing applications and the steady influx of new applicants each year. Additionally, he pointed out that Kuwait's youth demographic, which makes up the majority of the population, adds urgency to the need for effective solutions.

Kuwait: NBK Reports Net Profit of KD 600.1 Million for FY2024
02.02.2025National Bank of Kuwait (NBK) has announced its financial results for the financial year ended 31 December 2024.The Bank reported a net profit of KD 600.1 million (USD 1.9 billion), compared to KD 560.6 million (USD 1.8 billion) for the financial year 2023, an increase of 7.0% year-on-year.
Earnings per share (EPS) stood at 69 fils by the end of 2024, compared to 65 fils by the end of 2023, Meanwhile, total assets as of December 2024 grew by 7.1% year-on-year, reaching KD 40.3 billion (USD 130.9 billion).
Customer deposits grew by 4.2%, totaling KD 22.9 billion (USD 74.2 billion) as of December 2024. Meanwhile, Group loans and advances reached KD 23.7 billion (USD 76.9 billion) by December 2024, reflecting a growth of 6.4% year-on-year.
In the meantime, shareholders' equity also saw an increase, standing at KD 3.9 billion (USD 12.7 billion), up by 5.9% year-on-year.
In terms of distributions, the Board of Directors has proposed a cash dividend of 25 fils per share for the second half of 2024, bringing the total cash dividend for the year to 35 fils, equivalent to around 50% of net profits. Furthermore, the Board has recommended the distribution of bonus shares at a ratio of 5%. These proposed distributions are subject to the approval at the Annual General Assembly (AGM).
Adapting To Changing Conditions
Commenting on the bank's annual financial results, Hamad Al-Bahar, NBK Group Chairman stated, “In 2024, we delivered strong performance, showcasing the resilience and adaptability of our flexible, diversified business model in response to varying economic conditions. This success was bolstered by a robust capital base, high asset quality, strong liquidity, and prudent risk management.”
He explained that the bank remains committed to balancing the achievement of optimal returns for its shareholders while addressing the evolving needs of its customers. He further emphasized that sustainability has become a key driver in strengthening the bank's long-term growth prospects, as it continues to implement significant initiatives that support responsible business practices and contribute to the sustainable development of Kuwait’s economy.
"In 2025, NBK aims to accelerate its sustainable financing efforts, targeting a sustainable asset portfolio of approximately USD 10 billion by 2030," stated Al-Bahar. He further highlighted that the bank continues to implement various initiatives as part of its efforts to achieve carbon neutrality.
Al-Bahar stated that throughout 2024, NBK strengthened its social contributions by launching and supporting numerous programs and initiatives across various sectors, including health, social development, the environment, youth, education, and women's empowerment. These efforts are aimed at reinforcing the foundations of sustainable development in alignment with Kuwait Vision 2035 and the National Development Plan (NDP), further advancing NBK's leading position as the largest contributor to social responsibility in Kuwait.
Sustainable Growth
Meanwhile, Mr. Isam J. Al-Sager, NBK Vice Chairman and Group CEO, said: “Despite heightened geopolitical tensions regionally and globally in 2024, along with their adverse economic repercussions and the onset of declining interest rates, NBK successfully maintained its trajectory of sustainable growth. The Group's net operating income grew by 7.2% year-on-year, reaching KD 1.3 billion (USD 4.1 billion)”.
Al-Sager emphasized that NBK's financial results for 2024 reflect exceptional operational performance across its various business sectors, particularly its core banking operations. He highlighted the significant contributions of the Group's international operations and Boubyan Bank, the Group's Islamic banking arm, to both revenues and net profits during the year.
Al-Sager highlighted NBK's ongoing efforts to expand its customer base by offering innovative digital products and services of international standards, coupled with exceptional customer service. He emphasized the bank's continued investments in technology and innovation, reinforcing its leadership in digital banking solutions that drive sustainable growth. These efforts not only maximize value for customers and shareholders but also contribute positively to our communities and to all stakeholders. This commitment has earned the bank numerous prestigious accolades, including being named the “Best in Innovation- Global Winner” for 2024, for the second consecutive year by Global Finance magazine.
Al-Sager emphasized that NBK Group is dedicated to further advancing its reputation as a trusted financial partner by fostering deeper relationships with existing customers and capitalizing on emerging opportunities. He highlighted the Group’s commitment to reinforcing its leadership in investment and wealth management services across the region, noting the launch of the "NBK Wealth" brand in 2024, which has established the largest wealth management entity in Kuwait and positioned it among the leading providers in the region.
Al-Sager highlighted NBK’s significant advancements in sustainability during 2024, emphasizing the bank's commitment to its ESG strategy, which underscores its leading role in shaping a more sustainable and prosperous future for all. He noted that NBK was the first bank in Kuwait to join the Partnership for Carbon Accounting Financials (PCAF) and achieved a major milestone by issuing Kuwait’s first green bonds, valued at USD 500 million, solidifying its position as a trailblazer among financial institutions in the country.
In the meantime, Al-Sager emphasized NBK’s unwavering commitment to investing in human capital, highlighting that in 2024, the bank continued to attract and nurture young talent through top-tier training and development programs aligned with international standards. These initiatives aim to cultivate a highly skilled generation of banking professionals, with a particular focus on digital competencies that have become indispensable in the evolving landscape of banking transactions driven by advanced technology and artificial intelligence.
Operational Environment
Regarding his outlook for the operational environment in 2025, Al-Sager expressed optimism about the continued momentum in project awards, building on the progress achieved in 2024 amid political stability.
He noted that with decision-making now centralized within the government, processes have become more streamlined and efficient. Al-Sager also expressed hope that this positive trajectory would be complemented by the enactment of key laws and legislations aimed to bolster domestic economic growth.
Al-Sager emphasized that NBK aims to play a pivotal role in financing upcoming mega projects, further solidifying its position as the government’s primary partner in funding major strategic initiatives. He highlighted that the anticipated improvement in project awards, coupled with the downward trajectory of interest rates, is expected to positively impact credit demand across both corporate and retail sectors.
However, he acknowledged the persistence of certain challenges that could have adverse economic repercussions, particularly the ongoing geopolitical tensions at both regional and global levels.
Key financial indicators for FY2024
• Net operating income stood at KD 1.3 billion (USD 4.1 billion), up 7.2% year-on-year
• Total assets grew by 7.1% year-on-year, at KD 40.3 billion (USD 130.9 billion)
• Total loans and advances increased by 6.4% year-on-year to KD 23.7 billion (USD 76.9 billion)
• Customer deposits grew by 4.2% year-on-year to KD 22.9 billion (USD 74.2 billion)
• Shareholders’ equity amounted to KD 3.9 billion (USD 12.7 billion), registering an annual growth of 5.9%.
• Strong asset quality metrics, with NPL/gross loans ratio at 1.34% and an NPL coverage ratio of 263%
• Robust Capital Adequacy Ratio of 17.3%, comfortably exceeding regulatory requirements.