NBK-Egypt reports EGP 4.1 billion net profit in H1 2025, a y-o-y growth of 30%
Net Operating Income stood at EGP 7.7 billion in H1 2025, recording a substantial increase of 28 percent from EGP 6.1 billion recorded in the corresponding period of 2024. In the meantime, Net Interest Income grew by 31 percent, reaching EGP 6.7 billion compared to EGP 5.2 billion in H1 2024. Meanwhile, Net Operating Income (excluding interests) increased to EGP 199 million in H1 2025, compared to EGP 147 million in H1 2024, up by 35 percent, while Cost to Net Operating Income grew by1 percent in H1 2024 to 24 percent in H1 2025.
Total assets reached EGP 206 billion by the end of H1 2025, up by 5 percent compared to EGP 196 billion by the end of 2024. Furthermore, total loans and credit facilities expanded to EGP 115 billion in H1 2025, reflecting a growth rate of 10 percent compared to EGP 104 billion recorded at the end of 2024. Additionally, customer deposits increased to EGP 166 billion by the end of 1H2025, up from EGP 160 billion at the end of 2024, representing a growth rate of 4 percent.
The ratio of operating income to total net income increased to 87 percent as of H1 2025, compared to 85 percent in the corresponding period of 2024. Moreover, the Return on Average Assets (ROAA) improved to 4 percent in 1H2025, while the Return on Average Equity (ROAE) stood at 35 percent.
Commenting on the financial results announced by NBK-Egypt, Shaikha Al-Bahar, Deputy Group Chief Executive Officer, National Bank of Kuwait, and Chairman of NBK-Egypt, said: 'The strong earnings growth achieved by NBK–Egypt in the first half of 2025 highlights the bank's solid financial standing and the enduring strength of its business model, which continues to generate sustainable profitability despite prevailing operational challenges. This performance stands as a testament to the Group's long-term strategic vision since its entry into the Egyptian market in 2007, reaffirming its confidence in the significant growth potential and strategic importance of one of the region's largest and most dynamic banking landscapes.'
Al-Bahar affirmed that Egypt remains one of the Group's most prominent strategic markets, playing a role in driving growth, and is consistently regarded as its second home market. As the largest Kuwaiti investment in Egypt, NBK has established a clear and growing footprint within the Egyptian banking sector. The Bank ranks among the fastest-growing institutions in the market, a position reinforced by its robust financial indicators, which underscore its solid trajectory toward further expansion and enhanced market share. Furthermore, Al-Bahar emphasized that the Group views the Egyptian market as a long-term strategic investment and remains committed to expanding its presence. She noted that NBK's operations in Egypt continue to rank among the most profitable within the Group, consistently delivering high returns on equity and assets.
Al-Bahar explained that the easing of geopolitical tensions in the region would significantly support the Egyptian economy and unlock greater investment opportunities. She also noted that the country's future outlook, continues to gain momentum from the ongoing reform efforts and the exceptional measures undertaken by the Egyptian government and the Central Bank of Egypt.
Meanwhile, Vice Chairman, CEO, and Managing Director of National Bank of Kuwait-Egypt, Yasser El-Tayeb, said: 'The Bank's solid financial indicators in the first half of the year underscore its ability to sustain growth and deliver strong business results, despite the exceptional challenges facing the business environment on the local and global fronts due to ongoing political instability and its economic ramifications.'
El-Tayeb emphasized that NBK–Egypt's growth remains well-balanced across all business lines, supported by efficiency and risk metrics aligned with both sustainable expansion and long-term resilience. He attributed this performance to the Bank's prudent policies and sound business model, which enable it to meet customer needs with agility and confidence. He added that the majority of NBK–Egypt's income is generated from credit operations, primarily through the corporate banking segment, while the retail banking sector has also witnessed notable growth in recent years.
The Bank's credit portfolio spans a broad spectrum of clients, ranging from large corporations to medium and small enterprises, while its retail portfolio serves diverse customer segments. This breadth underscores the strength and diversification of NBK–Egypt's income sources. El-Tayeb emphasized the bank's commitment to further strengthening its position in the retail banking sector by offering advanced services and products tailored to diverse customer segments, aiming to establish itself as a comprehensive bank that fulfills all their financial needs.
Furthermore, he also emphasized NBKE's firm belief in the pivotal role of technology and digital channels in shaping the future of the banking sector. Recognizing their importance in strengthening competitive advantage, NBK–Egypt has made substantial investments to upgrade its core banking systems and significantly expand its suite of digital services. These efforts are aimed at delivering a seamless and distinctive banking experience, enabling customers to carry out their transactions anytime, anywhere. In parallel, the Bank is committed to encouraging broader adoption of electronic payment methods, in alignment with the strategic direction of the Egyptian government and the Central Bank of Egypt.
El-Tayeb emphasized that NBK–Egypt is committed to supporting the global shift toward sustainable finance and the transition to a green economy. The Bank actively backs environmentally responsible projects that promote sustainability and greater reliance on renewable energy sources. It also continues to explore viable solutions to mitigate the adverse impacts of climate change and reduce carbon emissions. Finally, El-Tayeb noted that sustainable finance has become one of the most critical instruments for promoting and preserving long-term financial stability.
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QDMTT paid in Kuwait If Kuwait collects the full KD 4 million under its QDMTT, then there would be no remaining top-up tax for other countries to collect from this MNE's Kuwaiti operations. This guarantees that the revenue stays within our national borders. Importance for MNEs in Kuwait: For multinational enterprises operating in Kuwait, understanding these computations is not merely an academic exercise. It directly impacts their future tax liabilities and compliance requirements. They will need: Robust data systems: To accurately track and report GloBE income and adjusted covered taxes for all their Kuwaiti entities. Scenario planning: To model the potential impact of Pillar Two on their effective tax rates and overall tax burden in Kuwait. Expert guidance: To navigate the complexities of these calculations and ensure compliance with Law 157/2024 and its executive regulations. A fairer share for Kuwait The calculation of the effective tax rate and the resulting top-up tax is the operational core of Pillar Two. By establishing a clear, step-by-step process, the GloBE Rules ensure transparency and consistency in determining if an MNE is paying its fair share. For Kuwait, the meticulous design of its QDMTT means that our nation is not just a participant in this global tax reform, but an active beneficiary. By capturing the top-up tax arising from economic activity within its jurisdiction, Kuwait secures vital revenue, fosters a more equitable business environment, and reinforces its commitment to modern, fair international taxation. This intricate dance of numbers ultimately leads to a stronger, more prosperous future for all in Kuwait. NOTE: Hassan M Abdulrahim is a Senior Instructor (Business) at Canadian College Kuwait and CEO & Co-founder of Visionary Consulting Company
