Kuwait: The National Bank of Kuwait (“NBK”, “Bank” or “Group”) announced financial results for the nine months ended 30 September 2022. Compared to 254.8 million KD ($819.9 million) in the same period in 2021, it represents a 46.9% improvement year-on-year.
Net profit for the three months ended September 30, 2022 reached KD 136.4 million ($438.9 million), a 45% increase from the same period in 2021. At the end of September 2022, his total assets increased by 6.8%. He reached KD 34.7 billion ($111.7 billion) year-on-year and total loans increased 8.7% year-on-year to KD 20.6 billion ($66.3 billion). Similarly, customer deposits increased by 11.0% to reach KD 19.3 billion ($62 billion) and total shareholders’ equity reached KD 3.5 billion ($11.2 billion), an increase of 1.5% year-on-year.
Commenting on the bank’s financial results for the period ending September 2022, Group Chairman Hamad Al-Bahar said: The business environment is showing strong signs of recovery and business sentiment has improved in recent quarters. Especially given the bleak outlook expected globally. Rising consumer spending, oil production and oil prices contributed positively in supporting the government’s financial position and providing a likely scenario for improved capital spending. ”
“In addition to the Bank’s strong financial performance during this period, the Bank has remained committed to fulfilling its national obligation to promote sustainable development. We are pleased to have demonstrated our commitment to investing in technology by doing this, NBK has committed to provide the necessary support to upgrade the government applications ‘Sahel’ and ‘Sahel Business’. It leverages the bank’s expertise in digital transformation and its commitment to increasing the effectiveness and efficiency of services provided to citizens, entrepreneurs and SMEs. ”
“Additionally, in furthering the social commitment of the private sector, NBK initiated a major expansion project for a children’s hospital specializing in stem cell transplantation, supporting the government’s efforts to improve medical services. We will finance the expansion project with an estimated cost of KD 13 million,” Al-Bahar added.
“Our strategy for sustainable growth focuses on environmental governance and aims to follow international standards and frameworks. We are focused on raising awareness and facilitating community initiatives in various health and education fields,” Al-Bahar explained.
“Furthermore, we are proud to launch NBK RISE, a global women’s leadership initiative aimed at elevating talented women to more important leadership roles. We aim to lead and inspire change and contribute to NBK’s sustainability goals of promoting diversity, equity and inclusion,” concluded Al-Bahar.
Deputy Chairman and Group CEO Isam Al-Sager commented on the Bank’s financial results for the fiscal year ending September 2022. The bank was driven by core banking activities, operating profit he achieved a healthy growth of 10.6%, reaching KD 753.5 million, while the low cost of risk level positively contributed to the improvement of profitability Did. ”
“Banks are witnessing strong growth in deposits, which is positively reflected in margins. Furthermore, the continuation of the growth trend across strategic markets and segments, including wealth management and Islamic banking, is It underpins our strong financial position and our ability to generate income from multiple streams.” , which is underpinned by our strong balance sheet, competitive advantage, and ability to provide our clients with innovative products and insightful advice.Additionally, our diverse business models serve our clients, communities , continues to create space to provide long-term added value to our shareholders,” said Al-Sager.
“NBK’s prudent risk, capital, liquidity and dynamic financial management will enable the Group to effectively overcome headwinds. We will be careful,” Al-Sagar explained.
“We will continue to implement our responsible growth strategy, investing in innovation and new technology for optimal returns, while promoting sustainable practices across our operations and operations. NBK has been awarded ‘Best Consumer Digital Bank in Kuwait and the Middle East’ by Global Finance, ‘Best ESG in Kuwait’ and ‘Best Bank for Diversity and Inclusion’ by Euromoney. It supports the Group’s commitment to the energy transition and its accelerating sustainable development,” argued Al-Sager.
Most notable results and metrics for the first nine months of 2022
* Net operating income was KD 753.5 million ($2.4 billion), an increase of 10.6% over 9M in 2021.
* Total assets increased 6.8% year-on-year to KD 34.7 billion ($111.7 billion)
* Total loans and advances increased by 8.7% year-on-year to KD 20.6 billion ($66.3 billion).
* Customer deposits grew 11.0% year-on-year to KD 19.3 billion ($62 billion)
* Strong asset quality indicators of 1.24% non-performing loans/total loans ratio and 308% non-performing loan coverage ratio
* Strong capital adequacy ratio of 16.3%, well above regulatory requirements