------------- -------------- ------------------- -------------------
Thursday , September 23 2021

NBK posts H1 net profit of KD 160.8mn

Total assets grow by 6.4% year-on-year to KD 31.6 billion

KUWAIT CITY, July 18: The National Bank of Kuwait (“NBK”, the “Bank” or the “Group”) has announced its financial results for the six-month period ended 30 June 2021. NBK reported a net profit of KD 160.8 million (USD 534.0 million), improving by 44.7% year-on-year. Net profit for the three-months ended 30 June 2021 reached KD 76.5 million (USD 254.0 million), a yearon- year increase of 128.8% from the comparable period in 2020.

Performance and operating highlights 1H 2021:
• Net operating income of KD 452.5 million (USD 1.5 billion), increasing by 9.2% compared to 1H 2020
• Total assets grew by 6.4% year-on-year, to KD 31.6 billion (USD 104.9 billion)
• Total loans and advances grew by 5.3% year-on-year to KD 18.5 billion (USD 61.5 billion)
• Customer deposits decreased by 0.9% year-on-year to KD 17.4 billion (USD 57.8 billion)
• Solid asset quality metrics, with NPL/gross loans ratio at 2.45% and an NPL coverage ratio of 152%
• Robust Capital Adequacy Ratio of 18.2%, comfortably in excess of regulatory requirements Commenting on the results, NBK Group Chairman, Nasser Al-Sayer, said: “Macroeconomic challenges and disruption caused by the Covid-19 pandemic continued to create headwinds in the first half of 2021.

Nasser Musaed Al-Sayer, NBK Group Chairman and Isam Al-Sager, NBK’s Group Chief Executive Offi cer

Despite this, the gradual recovery that we achieved in the first quarter continued into the second, with increased vaccine penetration and some easing of mobility and other restrictions leading to improved business confidence and activity. We are cautiously optimistic that this trend will continue as the year progresses, which bodes well for the national economy and for the banking sector. The expansionary budget announced by the Kuwait government for 2021-2022, together with higher oil prices contributing more to state revenues, are positive for the business environment. However, the future course of the pandemic and its impact on economic activity remains uncertain and we expect return to normal levels of activity to remain gradual.

“NBK remains committed to supporting the economies where it operates including that of Kuwait, its businesses, citizens, and residents. By delivering on our social as well as economic responsibilities to the country, we are helping to build a stronger future for all. In this respect, we are more committed than ever before to integrating impactful ESG strategies across all aspects of our business. Our headquarters relocation to a new LEED gold building has led to considerable reductions in energy use, greenhouse gas emissions, and water consumption. Meanwhile, our support for the vaccination rollout, including for our own staff, is an important part of our social commitment. “The soundness of NBK’s fundamentals, our focus on efficiency, and our institutional strength as a national and regional leader are enabling us to respond effectively to the temporary challenges that we face. We are maintaining a conservative approach to risk, and to prudent balance sheet management, and focused on continuing to drive excellence in performance against these metrics across our operating markets.”

NBK Group Tower in the heart of Kuwait City.

NBK Group Chief Executive Officer, Isam J. Al-Sager, commented: “NBK’s performance in the first half demonstrated a number of strengths including solid asset growth, driven by increasing loans and advances as business volumes have begun to gradually normalize. The Group’s net operating income grew by 9.2% year-on-year to KD 452.5 million (USD 1.5 billion). Moreover, the stability and diversity of our funding mix on the other hand proved its vitality to the Group and the trustworthiness embedded in clients towards NBK in such times. We are seeing positive signs across sectors including buoyant demand for credit by households and a tentative acceleration in project activity in Kuwait, with about KD 2.2 billion (USD 7.3 billion) expected to be tendered in 2021. “Although the low interest rate environment continues to challenge and pressure margins, the Bank proved resilient in preserving margin levels.

Moreover, our flagship digital investments, a key pillar of our strategy, continues to be on track and we are effectively managing its related costs. “Our strategy remains anchored in the diversity of our operations, with business various segments making strong contributions to bottom line. Our scope to increase digitalization has achieved further success in delivering efficiencies within the organization and improving the convenience and quality of our products and services to customers. We are now focused on accelerating our drive towards digital excellence as we look forward after an extended period of uncertainty. “We are proud to report that NBK continues to receive international recognition and respected awards, including ranking first among Kuwaiti banks in The Banker magazine’s list of the Top 1,000 World Banks, and 9th in the Middle East, in June 2021.”

Check Also

NBK increases the number of its operating branches to 17

‘To satisfy our customers’ needs’ KUWAIT CITY, April 25: Since the beginning of the health …

Translate »