NBK reports KD 275.3m in net profit for H1 2023
KUWAIT: National Bank of Kuwait (NBK) has released its financial results for the six-month period ended 30 June 2023.The Bank reported a net profit of KD 275.3 million ($896.7 million), recording a year-on-year growth of 15.8 percent compared to the same period in 2022, where it recorded KD 237.8 million ($774.6 million).
In the three-month period ended 30 June 2023, NBK achieved a net profit of KD 141.1 million ($459.7 million), reflecting a year-on-year growth rate of 16.4 percent. Total assets as of the end of June 2023 grew by 5.3 percent year-on-year to reach KD 36.1 billion ($117.5 billion), whereas total loans and advances increased by 7.1 percent year-on-year to KD 21.6 billion ($70.2 billion), while total shareholders’ equity reached KD 3.6 billion ($11.7 billion), growing by 6.6 percent year-on-year.
Hamad Al-Bahar.
NBK Board of Directors has resolved to distribute semi-annual cash dividends of 10 fils per share for the period ended 30 June 2023 representing 10 percent of the nominal value of the shares. Commenting on the bank’s 1H2023 financial results, Hamad Al-Bahar, NBK Group Chairman, said: “NBK delivered robust financial results in the first half of 2023. Our performance during that period reflects the great value derived from our diversified business portfolio and the resilience demonstrated by our balance sheet. It further reinforces our dedication to delivering sustainable and long-term added value to our customers, communities, and shareholders”.
“In the face of a challenging global economic landscape, we demonstrate our resilience and strength through our growth strategy, prudent risk and capital management, and diverse business portfolio,” Al-Bahar added. Furthermore, Al-Bahar highlighted that NBK is reaping the benefits of its strategic investments in technology and its people, expressing his unwavering confidence in the bank’s ability to continue its successful path, effectively addressing the growing needs of its customers, and achieving accomplishments that cater to their increasing demands. “Our dedication to fostering customer loyalty, community contributions, and upholding the highest sustainability standards, strengthens our position as a regional leading bank.Moreover, it facilitates long-term growth opportunities,”
Al-Bahar stated. Meanwhile, Isam J Al-Sager, NBK Group Vice Chairman and CEO, said: “In the first half of 2023, we demonstrated our commitment to our shareholder-focused strategy by successfully achieving strong profits and maximizing returns”. Al-Sager highlighted that the sentiment in the operating environment in Kuwait is gradually improving following the election of the new parliament. He also expressed his optimism that this could result in improved momentum in the operational environment during the second half of the year.
Furthermore, he emphasized the exceptional performance of NBK’s core business activities during the reporting period, building upon the continued positive performance achieved since the beginning of the year. “Thanks to substantial growth in net interest income and net fees and commissions, the net operating income experienced a notable increase of 18.8 percent in the first half of 2023, reaching KD 565.9 million,” Al-Sager stated. “Leveraging its robust foundation and a proven track record of maintaining resilient financial performance in various scenarios, NBK is well-positioned to provide its customers with comprehensive and tailored services from professional financial advice, to all products and services they require.
Isam Al-Sager.
Furthermore, the bank is dedicated to advancing its innovative digital experiences, distinguishing itself from competitors, and creating long-term value for its shareholders,” Al-Sager explained. He highlighted the significance of strong business growth, robust liquidity, and prudent levels of asset quality as factors that will continue to drive profit growth throughout 2023. Furthermore, he emphasized that these factors have also empowered the bank to successfully navigate substantial challenges within the global banking industry. “The first six months of the year witnessed NBK’s unwavering commitment in executing its strategic priorities and initiatives, resulting in notable revenue growth and strong operational performance.
Additionally, significant milestones were achieved in the bank’s digital transformation journey, bolstering relationships with existing customers and attracting new ones,” Al-Sager noted. Furthermore, Al-Sager expressed the bank’s pride in being awarded the “Best Bank for Corporate Responsibility in the Middle East” by Euromoney Awards for Excellence 2023. He also highlighted NBK’s advancements in digital innovation, initiatives for women’s empowerment, sustainable development of resources and talent. These achievements are the results of the diligent efforts of the bank’s employees in creating a unique customer experience and executing the bank’s strategic priorities.
“In its pursuit to become the leading partner for customers and the community, NBK has unveiled its strong commitment to business practices and sustainable financing activities, including dedicated efforts towards achieving carbon neutrality. In alignment with these endeavors, NBK has recently re-envisioned the ESG strategy, with a focus on integrating its pillars throughout the group’s operations and various activities. The bank has also published its Sustainability Report 2022, employing a new methodology and framework that effectively highlights the progress achieved in its initiatives.
Additionally, NBK has organized training programs to equip employees with accredited certificates, ensuring that they possess the necessary knowledge and skills to fully understand the standards established by the Global Reporting Initiative (GRI),” Al-Sager concluded. Key financial indicators for H1 2023 * Net operating income stood at KD 565.9 million ($1.8 billion) in H1 2023, up 18.8 percent year-on-year * Total assets grew by 5.3 percent year-on-year, at KD 36.1 billion ($117.5 billion) * Total loans and advances increased by 7.1 percent year-on-year to KD 21.6 billion ($70.2 billion) * Customer deposits grew by 7.1 percent year-on-year to KD 20.3 billion ($66.0 billion) * Strong asset quality metrics, with NPL/gross loans ratio at 1.75 percent and an NPL coverage ratio of 218 percent * Robust Capital Adequacy Ratio of 16.4 percent, comfortably in excess of regulatory requirements.
