Kuwait City, August 24: National Bank of Kuwait - Egypt (NBK-Egypt) has reported net profits of EGP 3.17 billion (equivalent to KWD 24.9 million) for the first six months of 2024, a significant increase from the EGP 1.57 billion (Equivalent to KWD 16.2 million) reported in the first six months of 2023, showcasing an impressive growth rate of 102%.

Net Operating Income stood at EGP 6.1 billion, recording a substantial increase of 56% from EGP 3.9 billion recorded in the corresponding period of 2023. In the meantime, Net Interest Income grew by 62%, reaching EGP 5.2 billion compared to EGP 3.2 billion in 1H2023.

Meanwhile, Net Operating Income (excluding interests) increased to EGP 905.7 million in 1H2024, compared to EGP 711.4 million in 1H2023, up by 27%, while Cost to Net Operating Income dropped from 33.8% in 1H2023 to 22.9% in 1H2024.

Total assets reached EGP 163.2 billion in 1H2024, up by 25% compared to EGP 130.6 billion by the end of 2023. Furthermore, total loans and credit facilities expanded to EGP 95.40 billion in 1H2024, reflecting a growth rate of 25.43% compared to EGP 76.06 billion recorded at the end of 2023. The significant increase in the balance of loans and credit facilities in foreign currencies, which grew by 27.80%, was largely driven by the impact of the rise in the exchange rate. Additionally, customer deposits increased to EGP 129.14 billion by the end of 1H2024, up from EGP 105.93 billion at the end of 2023, representing a growth rate of 21.91%. The key factor driving the 45.21% increase in foreign currency customer deposits was the impact of the rising exchange rate. Furthermore, The Return on Average Assets (ROAA) improved to 4.3% in 1H2024, compared to 2.9% in the corresponding period of 2023, while the Return on Average Equity (ROAE) increased to 38.8% in 1H2024, up from 26.9% in the corresponding period of 2023.

Commenting on the financial results announced by NBK-Egypt, Ms. Shaikha Al-Bahar, Deputy Group Chief Executive Officer, National Bank of Kuwait, and Chairman of NBK-Egypt, said: “NBK Egypt's achievement of historic growth and record business results in the first half of 2024 clearly underscores its ongoing success in strengthening its position within the Egyptian market. Egypt remains a key market for NBK Group due to its promising growth potential and positive outlook. The bank's operations in Egypt continue to rank among the most profitable within the Group, showcasing the highest rates of return on equity and assets.”

Al-Bahar emphasized that the continued expansion of the balance sheet and the growth of all financial indicators reflect the success of the bank's business diversification strategy and its accelerated digital transformation efforts. This strategy aims to increase the bank's market share, particularly in retail banking services, in the region's largest market by population.

"We are committed to enhancing the quality of our services, expanding our geographical footprint, and reaching a more diverse customer base. This is made possible by the significant advancements in our digital infrastructure, information technology, and digital channels. These developments have positioned NBK-Egypt as a strong competitor in the Egyptian banking market." Al-Bahar added.

“Egypt stands as a key growth market for NBK Group and a cornerstone of our long-term strategic investment. We remain steadfast in our commitment to further expansion, with our ongoing success underscoring the Group's vision for this market. Our focus is on harnessing this momentum to meet the increasing demand for banking services and to drive financial inclusion forward,” Al-Bahar concluded,” Al-Bahar concluded.

Meanwhile, Vice Chairman, CEO, and Managing Director of National Bank of Kuwait-Egypt, Mr. Yasser El-Tayeb, said: “The strength of the bank's business results in 1H2024, which have exceeded all expectations and targets for this period of the year, reflects the resilience and adaptability of our business model. This growth continues despite the exceptional market challenges we face locally, regionally, and globally.”

El-Tayeb emphasized that NBK-Egypt is experiencing consistent growth across all activities and business sectors while maintaining efficiency rates and risk ratios that align with this expansion. This approach ensures business sustainability and customer satisfaction alike, thanks to the bank's prudent policies and its robust business model capable of meeting customer needs and diversifying income sources.

“A significant portion of NBK - Egypt's income is generated through a balanced approach, with strong contributions from both corporate credit operations and the rapidly growing retail banking sector. Our credit portfolio is notably diverse, covering large, medium, and small enterprises, while our retail banking portfolio serves a wide array of customer segments. This diversity is a testament to the strength and resilience of our income streams. Looking ahead, we are dedicated to further solidifying our leadership in the retail banking sector by delivering more advanced services and products tailored to the evolving needs of our diverse customer base,” El-Tayeb stated.

He also highlighted that NBK - Egypt is dedicated to advancing the global shift towards sustainable finance and the transition to a green economy. The bank is committed to supporting environmentally friendly projects that foster sustainability and enhance the use of renewable energy. Additionally, NBK - Egypt is focused on exploring solutions to mitigate the adverse impacts of climate change and reduce carbon emissions. Sustainable finance is increasingly recognized as a vital tool for ensuring and maintaining long-term financial stability.

El-Tayeb concluded by underscoring the bank’s firm belief in the pivotal role of technological advancements and digital channels in the banking sector. Recognizing their significance in bolstering competitive advantage, the bank has proactively enhanced its digital services and encouraged customers to broaden their use in payments. This aligns with the national policy and the Central Bank of Egypt’s objectives to promote financial inclusion and integrate new customer segments into the formal banking system, ultimately contributing to a less cash-dependent society.