ShareKUWAIT: National Bank of Kuwait (NBK) has announced its financial results for the nine-month period ended 30 September 2023.The bank reported a net profit of KD 431.1 million ($1.4 billion), compared to KD 374.2 million ($1.2 billion) for the corresponding period in 2022, improving by 15.2 percent year-on-year. In the three-month period ended September 30, 2023, NBK achieved a net profit of KD 155.8 million ($504.1 million), demonstrating an annual growth rate of 14.2 percent.
Total assets as of the end of September 2023 grew by 6.1 percent year-on-year to reach KD 36.8 billion ($119.2 billion), whereas total loans and advances increased by 5.8 percent year-on-year to KD 21.8 billion ($70.5 billion), while total shareholders’ equity reached KD 3.8 billion ($12.1 billion), growing by 7.4 percent year-on-year.
Commenting on the bank’s 9M 2023 financial results, Hamad Al-Bahar, NBK Group Chairman, said: “We are delighted by the continuous growth in our profits, as it extends from our strong financial performance. This success primarily stems from our core banking activities, demonstrating our solid financial standing, the resilience of our business model, and its ability to generate positive results in diverse economic conditions and cycles”.
“Our prudent approach in diversifying revenue streams and making substantial investments, which have upheld our leadership in digital service provision, further strengthen the robust foundations upon which NBK stands. This approach drives us toward sustainable future growth and underscores our dedication to optimizing value for our shareholders,” Al-Bahar added.
Furthermore, Al-Bahar highlighted that the commitment to maximizing value extends to encompass all stakeholders. He affirmed NBK’s dedication to meeting its social responsibilities, supporting the country’s development initiatives and projects, providing innovative and exceptional services to customers, nurturing the growth of local talent, and strengthening reliance on local suppliers.
Al-Bahar concluded his remarks by underlining the ongoing commitment to responsible growth, with a significant focus on adhering to environmental, social, and corporate governance (ESG). He also reaffirmed NBK’s unwavering dedication to maintaining responsible banking standards not only in Kuwait but also throughout the region.
Meanwhile, Isam J Al-Sager, NBK Group Vice Chairman and CEO, said: “We are delighted to announce robust profits for the first nine months of 2023. This achievement aligns with our ongoing progress towards attaining our strategic objectives, further solidifying our leadership position and bolstering NBK’s prospects for future growth, all while emphasizing our commitment to sustainable and diversified sources of revenue.
Al-Sager envisions that NBK’s profitability will continue to rise in the future. This growth is bolstered by the bank’s robust balance sheet, healthy liquidity levels, and substantial capitalization. Furthermore, the careful strategy NBK employs in diversifying revenue streams and managing risks will be instrumental in further strengthening this positive outlook.
“All major business sectors sustained their growth momentum, resulting in a year-on-year increase in net operating income15.6 percent to KD 863.8 million. This growth was underpinned by the expansion of net interest income, as well as income derived from fees and commissions,” Al-Sager added.
Al-Sager highlighted that confidence in the operating environment continued to rise during the third quarter. This optimism was particularly boosted by the government’s unveiling of a comprehensive work plan, featuring ambitious development strategies and projects, with a strong emphasis on private sector participation. This favorable backdrop is expected to stimulate business activity in the future.
“We remain cautious on the operating environment as we monitor how the recent geopolitical tensions will evolve and their impact on the business sentiment,” Al-Sager added. Al-Sager also explained that the growth in profitability aligns with the strengthening of NBK’s financial position. This is evident through the consistent growth in the loan portfolio, customer deposits, and total assets, all while maintaining a high level of asset quality, thanks to NBK’s prudent risk management policy.
“The contribution of our International Banking Group and our Islamic banking division, Boubyan Bank, in driving profit growth underscores our forward-looking vision and the success of our diversification strategy. This emphasizes NBK’s continued dedication to increasing its presence in local markets and capitalizing on growth opportunities in the markets where it operates,” Al-Sager added.
“We remain committed to making strategic investments aimed at further strengthening our leadership in delivering digital banking services. This plays a pivotal role in maintaining our dominant market share in Kuwait and extending our reach to various customer segments, particularly the younger demographic. Furthermore, these investments align with our expansion goals for our international branches and subsidiaries in the markets where NBK operates,” Al-Sager confirmed.
Al-Sager emphasized the current focus on enhancing reliance on big data analytics, Artificial Intelligence (AI), and machine learning. This strategic focus aims to fully leverage the bank’s substantial technological infrastructure and enhance the digital banking experience for NBK customers.
“We have made significant advancements in offering responsible banking services to our customers in line with our strategy to incorporate ESG practices and initiatives across all the Group’s operations and activities. Additionally, we have introduced services and products to support our customers’ efforts in advancing their green transformation initiatives,” Al-Sager noted. Al-Sager concluded by highlighting that NBK continues to set a leading example for all private sector institutions by prioritizing social responsibility. This commitment reflects a strong belief in the significance of such endeavors in driving forward the journey toward sustainable growth.
