Latest news with #AlSager
Zawya
23-07-2025
- Business
- Zawya
NBK reports KD 315.3mln in net profit for 1H2025
By retaining interim earnings till year-end and focusing on end of year final dividends distribution, NBK positions itself to seize growth opportunities as they emerge during the fiscal year Al-Bahar: NBK delivered outstanding operational results, driven by a well-anchored strategy centered on a diversified business mix and prudent risk management The Bank's strong financial performance underscores its ability to adapt effectively to shifting economic conditions Our robust balance sheet continues to support the delivery of superior returns to shareholders and sustained value to customers Al-Sager: NBK continues to demonstrate its adaptability to evolving operating conditions Earnings highlight the strength of our diversification strategy and our success in fostering sustainable growth NBK remains focused on enhancing its domestic competitiveness while expanding its presence in international markets Strong demand from global investors for our recent bond issuance reflects confidence in the Bank's credit worthiness We are committed to supporting domestic economic growth through financing strategic development projects Advancing further economic legislative reforms will be key to unlocking stronger growth momentum We maintain a cautiously optimistic outlook for project activity in the second half of the year and beyond The government's commitment to empowering the private sector participation under Kuwait Vision 2035 will play a vital role in driving economic expansion National Bank of Kuwait (NBK) has announced its financial results for the six-month period ended 30 June 2025, reporting a net profit of KD 315.3 million (USD 1.0 billion), compared to KD 292.4 million (USD 957.8 million) for the corresponding period in 2024, marking a year-on-year increase of 7.8%. Profit before tax reached KD 401.5 million (USD 1.3 billion) during the period, marking a 17.0% increase compared to KD 343.1 million (USD 1.1 billion) in the corresponding period of 2024. As of the end of June 2025, total assets rose by 15.9% year-on-year to KD 43.6 billion (USD 143.0 billion), while total loans and advances grew by 12.1% year-on-year, reaching KD 25.5 billion (USD 83.5 billion). Customer deposits grew by 9.5% on an annual basis, reaching KD 23.9 billion (USD 78.2 billion) by the end of June 2025. Meanwhile, shareholders' equity reached KD 4.2 billion (USD 13.9 billion), reflecting a growth of 10.3% year-on-year. The Board of Directors has opted to retain interim earnings till year-end, focusing on end of year final dividend distribution. The decision reflects the Board's commitment to strengthening the Group's balance sheet in seizing promising growth opportunities across its operating markets, particularly in light of the anticipated pickup in business activity in Kuwait, while maintaining flexibility in managing interim capital adequacy ratio. A Robust Strategy Commenting on the Bank's 1H2025 financial results, Mr. Hamad Al-Bahar, NBK Group Chairman stated, 'NBK's strong performance reflects its ability to navigate varying economic conditions, even amid heightened geopolitical challenges and global trade tensions stemming from recent U.S. tariffs. The Bank's solid operational results underscore the strength of its well-established strategy, anchored in a diversified business model and prudent risk management.' Al-Bahar emphasized that NBK's strong balance sheet, solid capital base, and high asset quality reinforces the Bank's ability to deliver sustainable profitability and optimal returns for shareholders and customers; while continuing to support the prosperity of the communities in which it operates. Al-Bahar noted that the Bank achieved several milestones across various areas during the first half of the year, most notably its selection as Kuwait's Main Settlement Bank. He emphasized that this recognition reflects years of continuous investment in enhancing the Bank's digital infrastructure, which qualified NBK to meet the technical and operational requirements set by Kuwait Clearing Company (KCC); securing the highest ratings among participants in the Central Counterparty Project (CCP). Reflecting its long-standing commitment to sustainability, Al-Bahar noted that NBK has continued to make significant strides toward a more sustainable future. He pointed to recent upgrades in the Bank's ESG ratings by leading global agencies, including Morningstar Sustainalytics and MSCI, as clear recognition of NBK's dedication to environmental stewardship, social responsibility, and sound governance practices. This was reinforced by the publication of the first allocation and impact report for its debut USD 500 green bond issued in June 2024, which is the first issuance of its kind in Kuwait. The report provides relevant information that highlights the allocation of proceeds from the green bond as of 31 March 2025 and the estimated environmental impact during the reporting period. Sustainable Growth Meanwhile, Mr. Isam J. Al-Sager, NBK Group Vice Chairman and CEO, said: 'Once again, NBK continues to affirm the resilience of its business model and its agility in navigating a shifting operating environment, consistently delivering profit growth across economic cycles. This performance underscores the strength of the Group's geographic diversification strategy and the effectiveness of its long-term approach to driving sustainable growth.' He noted that the Bank delivered solid operating performance across its core business segments during the first half of 2025, with the Group's net operating income rising by 3.1% year-on-year to reach KD 631.4 million (USD 2.1 billion). Al-Sager highlighted the strong contribution of the International Banking Group (IBG), as well as Boubyan Bank — the Islamic banking arm of NBK— to the Group's net operating income and profitability during 1H2025. In addition, NBK Wealth continues to strengthen its position as the leading wealth management firm in Kuwait and among the largest in the region; offering a comprehensive suite of private banking, wealth and investment management solutions and advisory services through an integrated global network. During the first half of 2025, NBK continued to deliver an enriched banking experience, underpinned by innovative solutions tailored to meet evolving customer needs. The Bank further reinforced its digital leadership by introducing a suite of carefully designed digital services and products aligned with customer expectations. He added that NBK remains committed to investing in technology and innovation as a core driver of growth, underscoring the Bank's focus on strengthening its competitive edge in the domestic market and expanding its presence across international markets. Regarding NBK's recent USD 800 million PNC6 Additional Tier 1 bond issuance, Al-Sager emphasized that strong investor demand afforded the Bank a notable pricing advantage. He noted that the order book peaked at USD 2.2 billion, with subscriptions exceeding 2.75x the issue size; driven by solid interest from a diverse base of global investors and financial institutions. The Operational Environment Commenting on the local operating environment, Al-Sager expressed cautious optimism regarding the outlook for project activity in the second half of the year and beyond. He pointed to the government's announcement of 141 projects under the 2025/2026 annual development plan, including large-scale ventures such as Mubarak Al-Kabeer Seaport, the expansion of the T2 passenger terminal at Kuwait International Airport, and the New Al-Sabah Hospital, as key drivers of anticipated momentum. Furthermore, he emphasized that the adoption of further economic legislative reforms would serve as a catalyst for accelerated economic growth, commending the government's commitment to enacting key legislation in the near term, including the anticipated approval of the mortgage law. He also underscored the importance of empowering the private sector to take a leading role in economic activity under Kuwait Vision 2035, noting that such measures are vital to enhancing the local business climate and supporting the growth of the national economy going forward. Prestigious Awards During the first half of 2025, NBK garnered several prestigious accolades that reaffirm its leadership both locally and regionally. These included being named Best Bank in Kuwait - 2025, as well as receiving awards for Best Retail Bank and Best Bank for SMEs in Kuwait by MEED International Magazine. Euromoney magazine also honored the Bank with multiple accolades in 2025, naming NBK Kuwait's Best Bank for ESG, Kuwait's Best Bank for Large Corporates, and Kuwait's Best Bank for Diversity and Inclusion. Moreover, NBK has also garnered multiple accolades across the MENA region, including Best Loan Offering-2025, Best Contactless Payment Experience, and Payment Solution for SMEs, awarded by MEED Magazine. Key financial indicators for 1H2025 Net operating income stood at KD 631.4 million (USD 2.1 billion), up 3.1% year-on-year Total assets grew by 15.9% year-on-year, at KD 43.6 billion (USD 143.0 billion) Total loans and advances increased by 12.1% year-on-year to KD 25.5 billion (USD 83.5 billion) Customer deposits grew by 9.5% year-on-year to KD 23.9 billion (USD 78.2 billion) Shareholders' equity amounted to KD 4.2 billion, (USD 13.9 billion) registering an annual growth of 10.3%. Strong asset quality metrics, with NPL/gross loans ratio at 1.33% and an NPL coverage ratio of 252% Robust Capital Adequacy Ratio of 16.4%, comfortably exceeding regulatory requirements. About NBK: National Bank of Kuwait (NBK) was established in 1952 as the first national bank and the first joint stock company in Kuwait and the Arab Gulf region. NBK achieved profits of USD 1. 9 billion (KD 600.1 million) in 2024, while the Bank's total assets reached USD 130.9 billion (KD 40.3 billion) by the end of 2024, and shareholders' equity reached USD 12. 7 billion (KD 3. 9 billion). NBK is the largest conventional financial institution in Kuwait and has actual predominance in the commercial banking sector. The bank has consistently retained the highest credit ratings among all banks in the region, as affirmed by renowned global ratings agencies such as Moody's, Standard & Poor's, and Fitch. Noteworthy is NBK's extensive network, encompassing branches and subsidiaries across key global financial hubs, including China, Geneva, London, Paris, New York, and Singapore. Additionally, NBK maintains a robust regional presence in Lebanon, Egypt, Bahrain, Saudi Arabia, Iraq, and the UAE. NBK Long-Term Rating Moody's Credit Rating: A1 Fitch Ratings: A+ Standard & Poor's Rating: A
Zawya
24-04-2025
- Business
- Zawya
NBK continues to strengthen its operational resilience and invest in advanced technologies
Al Sager: NBK Not Only Overcomes Challenges — It Transforms Them into Opportunities for a Stronger, More Sustainable Future NBK remains confident in its ability to adapt to evolving economic conditions while maintaining its leadership in the local market The bank's strong regional and international footprint continues to play a key role in mitigating risks, stabilizing revenues, and boosting operational efficiency Excluding the impact of the recently introduced tax, NBK reported a 0.8% year-on-year increase in first-quarter profits The bank sustained solid performance metrics, delivering a return on average assets of 1.33% and a return on average shareholders' equity of 13.1% NBK continues to strengthen its operational resilience and invest in advanced technologies, all while upholding the highest standards of quality to meet evolving customer needs With over KD 10 billion in projects currently underway, the government reaffirms its unwavering commitment to advancing its ambitious development and reform agenda The recently enacted Financing and Liquidity Law is expected to provide greater flexibility in managing public finances The banking sector's strong liquidity position reinforces its capacity to support national priorities, including playing a central role in addressing the country's housing challenges Ronghe: NBK Group maintains a solid financial position, supported by robust capitalization and high credit quality The Bank's diversified and stable funding base continues to provide the flexibility needed to finance major development projects currently in the pipeline The anticipated issuance of sovereign debt instruments by the Kuwaiti government is expected to create opportunities for redeploying liquidity into interest-bearing assets, further enhancing returns International operations remain a key pillar of the Group's performance, contributing 26% of operating income and 27% of net profit IBG and Boubyan Bank accounted for 44% and 23%, respectively, of the Group's total assets—highlighting the strength and balance of NBK's diversified business model. Mr. Isam Al-Sager, Vice Chairman and Group CEO of National Bank of Kuwait (NBK), expressed unwavering confidence in the bank's ability to swiftly adapt to the evolving economic landscape, all while maintaining its leadership position in the local market. On the sidelines of the analyst conference call for the first quarter of 2025, Al-Sager stated, "We not only overcome these challenges, but we seize them as opportunities to build a stronger and more sustainable future." He emphasized that NBK continues to enhance its flexibility, investment, and technology, all while maintaining a steadfast commitment to the highest quality standards in addressing the evolving needs of its customers. He highlighted that NBK's regional and international presence remains a key factor in mitigating risks, stabilizing revenue, and improving operational efficiency. He further stressed that the Group's ongoing goal is to drive value and profitability by strengthening the integration of its businesses and expanding cross-selling opportunities across the various markets in which it operates. Al-Sager emphasized that the Group's wealth management business will continue to leverage its extensive experience in delivering a comprehensive approach to portfolio management, advisory services, and investment opportunities. Meanwhile, its Islamic banking arm, represented by Boubyan Bank, will further reinforce NBK's distinctive position in the local market and play a pivotal role in diversifying its sources of profitability. He attributed the 8.5% year-on-year decrease in the bank's net profit for the first three months of 2025 primarily to the introduction of the new Domestic Minimum Top-up Tax (DMTT), which took effect this quarter. This led to an increase in the effective tax rate to 16.3% in 1Q2025, compared to 9.2% in the corresponding period of 2024. He noted that, excluding the impact of the new tax, pre-tax profit actually saw a 0.8% year-on-year increase, reaching KD 173.4 million in the first quarter of 2025. Al-Sager stated that the Group's returns remained robust despite the impact of the new tax system, with the return on average assets reaching 1.33% in the first quarter of 2025. Meanwhile, the return on average shareholders' equity stood at 13.1%. He also highlighted that the Group's loan portfolio is strategically allocated, with 70% originating from Kuwait and 30% generated through its international presence. 'NBK reaffirms its unwavering commitment to sustainability and advancing its sustainable financial agenda. The successful issuance of the first green bonds in 2024 stands as one of the bank's most significant achievements, attracting strong interest from international investors and reaffirming the market's confidence in our ESG strategy,' Al-Sager added. He highlighted that the bank continues to make significant strides in integrating climate-related standards into its operations, with a particular focus on reducing the carbon footprint of its investment portfolio and effectively managing climate risks. He noted that these efforts align with leading international standards, strengthening NBK's role as a key player in supporting Kuwait's commitment to achieving carbon neutrality, while also reflecting its crucial role in driving the transition toward a low-emission economy. Kuwait's Economy On the performance of the Kuwaiti economy, Al-Sager stated that despite the slowdown in macroeconomic activity in 2024, the near-term growth outlook for 2025 remains optimistic. He attributed this positive outlook to several key factors, including the anticipated easing of voluntary production cuts by OPEC+, the gradual recovery of consumer spending, credit growth, the resurgence of momentum in project market activities, and the potential acceleration of public investment. He explained that, supported by these factors, Kuwait's GDP is expected to grow by 3.0% in 2025. Regarding the projects market, Al-Sager noted, 'The market experienced some slowdown in the first quarter of 2025, following a strong year of activity in 2024. The value of projects awarded in the first quarter reached over KD 400 million. However, the outlook remains promising, with projects in preparation estimated to exceed KD 10 billion, reflecting the government's strong commitment to advancing its development and reform agenda at an accelerated pace'. As for the short-term outlook for oil prices, Al-Sager remarked that as the government continues to focus on implementing its development plan, oil price fluctuations have become less impactful on capital spending. He explained that this type of spending now accounts for less than 10% of the total government budget, reducing the likelihood of significant savings should oil revenues face pressure. He also noted that the first two years of capital spending will primarily focus on addressing infrastructure gaps, with the provision of basic services to meet population growth remaining a key priority. He stated that the recently approved Financing and Liquidity Law provides the government with greater flexibility in managing its financial resources, enabling the issuance of debt instruments worth up to KD 30 billion. On the mortgage law, Al-Sager explained that several important meetings have recently been held to approve the law, including discussions with the Public Authority for Population Welfare to sign advisory service agreements with real estate developers. He indicated that the law is expected to be approved due to its strategic importance, particularly given the more than 100,000 pending housing applications and the growing population of Kuwaiti youth, which adds approximately 10,000 new applications annually. Furthermore, Al-Sager emphasized that the banking sector's strong liquidity position strengthens its ability to play a key role in addressing the housing problem in Kuwait. The GCC & The Global Economy Al-Sager pointed out that, supported by robust fiscal reserves, ambitious economic reform programs, continued progress in major projects, and strong demand, the economies of the GCC are expected to maintain relatively strong performance in 2025. However, he cautioned that tightening global financial conditions could dampen investment and trade flows, increase financing costs, and potentially lead to a decline in demand, along with volatile oil prices. Regarding the global economy, Al-Sager noted that it has recently navigated a complex environment marked by shifting monetary policies and escalating geopolitical tensions. He pointed out that the recent trade war and tariffs imposed by the US administration have cast a shadow over the economic landscape, potentially contributing to higher inflation rates and a slowdown in growth, further deepening the uncertainty surrounding the global economic outlook. Robust Operational Performance In the meantime, Mr. Sujit Ronghe, NBK Group Chief Financial Officer, stated that despite the impact of the new tax regime, the Group maintained strong operating performance in the first quarter of 2025, driven by significant growth in business activities, particularly in lending and investment. He highlighted that the operating income mix remains well-balanced, with non-interest income comprising 24% of total revenue sources. Ronghe emphasized that NBK Group's financial position remains robust, characterized by high levels of credit quality, strong capitalization, and the bank's ability to generate operating profits that enhance its capacity to absorb credit losses. He further noted that the Group continues to leverage its unique advantage among Kuwaiti banks, particularly through its broad geographical presence via a network of overseas branches and subsidiaries, along with its ability to offer both conventional and Islamic banking services. He highlighted that operating income during the first quarter of 2025 was distributed across key business segments, with overseas branches and subsidiaries contributing 26%, Islamic banking 22%, consumer banking 20%, corporate banking 12%, and NBK Wealth 9%. Ronghe further explained that overseas branches and subsidiaries accounted for 27% of the Group's net profit during the first quarter of 2025, while Islamic banking contributed 19%, corporate banking 17%, consumer banking 16%, and NBK Wealth's contribution reached 10%. He also noted that IBG and Boubyan Bank collectively contributed 44% and 23%, respectively, to the Group's total assets, reinforcing the Group's strategy of diversifying its revenue sources. Ronghe noted that the Group's loans and advances saw impressive growth during the first quarter of 2025, reaching KD 24.6 billion, reflecting a 9.9% increase compared to March 2024 and a 3.8% rise on a quarterly basis. This growth was driven by higher loan volumes in both Kuwait and international markets, across conventional and Islamic banking services. He further pointed out that, amidst the prevailing economic uncertainty, loan growth in 2025 is expected to remain in the single-digit range. However, any improvement in global conditions, a faster pace of project implementation, or the approval of the mortgage law in Kuwait could significantly boost the growth of loan activities. Regarding the recently implemented DMTT tax in Kuwait and its impact on the bank's profits for the current year, Ronghe stated: "The executive regulations of the law are expected to be issued within six months of its adoption. In the absence of detailed regulations at this stage, current estimates suggest that the effective tax rate for 2025 will range between 16% and 17% of pre-tax profits. He pointed out that the net interest margin for the first quarter of 2025 was impacted, reaching 2.45%, due to an unfavorable shift in the asset mix, along with the annual effect of the depreciation of the Egyptian pound and the decline in historically high interest rates. However, the recent approval of the Finance and Liquidity Law in Kuwait boosts expectations for the upcoming issuance of sovereign debt instruments this year, which will allow the bank to repurpose liquidity into interest-bearing assets. He emphasized the bank's capacity to provide the necessary financing for development projects currently in the pipelines, supported by its diversified and stable financing base, which aligns with NBK's strategy for sustainable growth. Regarding his outlook for the operating environment, Ronghe stated: 'Despite the prevailing uncertainty in the economic landscape, we remain cautiously optimistic that the overall operating environment, although challenging, stabilize in due course during 2025'.
Zawya
29-01-2025
- Business
- Zawya
NBK reports net profit of KD 600.1mln for FY2024
RELATED TOPICS EARNINGS RELATED COMPANIES Boubyan Bank national bank of kuwait (nbk) International Banking Group Nbk Group NATIONAL BANK OF KUWAIT (INTERNATIONAL) PLC The Bank's Board of Directors has proposed a cash dividend of 25 fils per share for the second half of 2024, bringing the total cash dividends for the year to 35 fils, alongside a bonus share distribution of 5% Al-Bahar: NBK's robust performance underscores the resilience and adaptability of our flexible, diversified business model across varying economic conditions We are focused on delivering optimal returns to our shareholders while addressing the evolving needs of our customers Throughout 2024, we reinforced NBK's leadership as Kuwait's leading contributor to social responsibility initiatives Al Sager: We continue delivering sustained growth, even in the face of escalating geopolitical tensions and the onset of declining interest rates The 2024 financial results highlight the exceptional operational performance across our diverse business lines, with the core banking activities leading the way The strong contributions from our International Banking Group, as well as Boubyan Bank, were instrumental in driving the Group's revenues and net profits Our ongoing investments in technology and innovation continue to strengthen our leadership, as we introduce innovative products and services that meet global standards We remain committed to strengthening NBK's position as a trusted financial partner by deepening our relationships with existing customers and capitalizing on emerging opportunities NBK has made significant strides in executing its ESG strategy, further reinforcing its role in creating a more sustainable future for all We are optimistic about the acceleration of project awards, fueled by political stability We are hopeful that this will be complemented by passing of key laws which supports domestic economic growth National Bank of Kuwait (NBK) has announced its financial results for the financial year ended 31 December Bank reported a net profit of KD 600.1 million (USD 1.9 billion), compared to KD 560.6 million (USD 1.8 billion) for the financial year 2023, an increase of 7.0% year-on-year. Earnings per share (EPS) stood at 69 fils by the end of 2024, compared to 65 fils by the end of 2023, Meanwhile, total assets as of December 2024 grew by 7.1% year-on-year, reaching KD 40.3 billion (USD 130.9 billion). Customer deposits grew by 4.2%, totaling KD 22.9 billion (USD 74.2 billion) as of December 2024. Meanwhile, Group loans and advances reached KD 23.7 billion (USD 76.9 billion) by December 2024, reflecting a growth of 6.4% year-on-year. In the meantime, shareholders' equity also saw an increase, standing at KD 3.9 billion (USD 12.7 billion), up by 5.9% year-on-year. In terms of distributions, the Board of Directors has proposed a cash dividend of 25 fils per share for the second half of 2024, bringing the total cash dividend for the year to 35 fils, equivalent to around 50% of net profits. Furthermore, the Board has recommended the distribution of bonus shares at a ratio of 5%. These proposed distributions are subject to the approval at the Annual General Assembly (AGM). Adapting To Changing Conditions Commenting on the bank's annual financial results, Hamad Al-Bahar, NBK Group Chairman stated, 'In 2024, we delivered strong performance, showcasing the resilience and adaptability of our flexible, diversified business model in response to varying economic conditions. This success was bolstered by a robust capital base, high asset quality, strong liquidity, and prudent risk management.' He explained that the bank remains committed to balancing the achievement of optimal returns for its shareholders while addressing the evolving needs of its customers. He further emphasized that sustainability has become a key driver in strengthening the bank's long-term growth prospects, as it continues to implement significant initiatives that support responsible business practices and contribute to the sustainable development of Kuwait's economy. "In 2025, NBK aims to accelerate its sustainable financing efforts, targeting a sustainable asset portfolio of approximately USD 10 billion by 2030," stated Al-Bahar. He further highlighted that the bank continues to implement various initiatives as part of its efforts to achieve carbon neutrality. Al-Bahar stated that throughout 2024, NBK strengthened its social contributions by launching and supporting numerous programs and initiatives across various sectors, including health, social development, the environment, youth, education, and women's empowerment. These efforts are aimed at reinforcing the foundations of sustainable development in alignment with Kuwait Vision 2035 and the National Development Plan (NDP), further advancing NBK's leading position as the largest contributor to social responsibility in Kuwait. Sustainable Growth Meanwhile, Mr. Isam J. Al-Sager, NBK Vice Chairman and Group CEO, said: 'Despite heightened geopolitical tensions regionally and globally in 2024, along with their adverse economic repercussions and the onset of declining interest rates, NBK successfully maintained its trajectory of sustainable growth. The Group's net operating income grew by 7.2% year-on-year, reaching KD 1.3 billion (USD 4.1 billion)'. Al-Sager emphasized that NBK's financial results for 2024 reflect exceptional operational performance across its various business sectors, particularly its core banking operations. He highlighted the significant contributions of the Group's international operations and Boubyan Bank, the Group's Islamic banking arm, to both revenues and net profits during the year. Al-Sager highlighted NBK's ongoing efforts to expand its customer base by offering innovative digital products and services of international standards, coupled with exceptional customer service. He emphasized the bank's continued investments in technology and innovation, reinforcing its leadership in digital banking solutions that drive sustainable growth. These efforts not only maximize value for customers and shareholders but also contribute positively to our communities and to all stakeholders. This commitment has earned the bank numerous prestigious accolades, including being named the 'Best in Innovation- Global Winner' for 2024, for the second consecutive year by Global Finance magazine. Al-Sager emphasized that NBK Group is dedicated to further advancing its reputation as a trusted financial partner by fostering deeper relationships with existing customers and capitalizing on emerging opportunities. He highlighted the Group's commitment to reinforcing its leadership in investment and wealth management services across the region, noting the launch of the "NBK Wealth" brand in 2024, which has established the largest wealth management entity in Kuwait and positioned it among the leading providers in the region. Al-Sager highlighted NBK's significant advancements in sustainability during 2024, emphasizing the bank's commitment to its ESG strategy, which underscores its leading role in shaping a more sustainable and prosperous future for all. He noted that NBK was the first bank in Kuwait to join the Partnership for Carbon Accounting Financials (PCAF) and achieved a major milestone by issuing Kuwait's first green bonds, valued at USD 500 million, solidifying its position as a trailblazer among financial institutions in the country. In the meantime, Al-Sager emphasized NBK's unwavering commitment to investing in human capital, highlighting that in 2024, the bank continued to attract and nurture young talent through top-tier training and development programs aligned with international standards. These initiatives aim to cultivate a highly skilled generation of banking professionals, with a particular focus on digital competencies that have become indispensable in the evolving landscape of banking transactions driven by advanced technology and artificial intelligence. Operational Environment Regarding his outlook for the operational environment in 2025, Al-Sager expressed optimism about the continued momentum in project awards, building on the progress achieved in 2024 amid political stability. He noted that with decision-making now centralized within the government, processes have become more streamlined and efficient. Al-Sager also expressed hope that this positive trajectory would be complemented by the enactment of key laws and legislations aimed to bolster domestic economic growth. Al-Sager emphasized that NBK aims to play a pivotal role in financing upcoming mega projects, further solidifying its position as the government's primary partner in funding major strategic initiatives. He highlighted that the anticipated improvement in project awards, coupled with the downward trajectory of interest rates, is expected to positively impact credit demand across both corporate and retail sectors. However, he acknowledged the persistence of certain challenges that could have adverse economic repercussions, particularly the ongoing geopolitical tensions at both regional and global levels. Key financial indicators for FY2024 Net operating income stood at KD 1.3 billion (USD 4.1 billion), up 7.2% year-on-year Total assets grew by 7.1% year-on-year, at KD 40.3 billion (USD 130.9 billion) Total loans and advances increased by 6.4% year-on-year to KD 23.7 billion (USD 76.9 billion) Customer deposits grew by 4.2% year-on-year to KD 22.9 billion (USD 74.2 billion) Shareholders' equity amounted to KD 3.9 billion (USD 12.7 billion), registering an annual growth of 5.9%. Strong asset quality metrics, with NPL/gross loans ratio at 1.34% and an NPL coverage ratio of 263% Robust Capital Adequacy Ratio of 17.3%, comfortably exceeding regulatory requirements. About NBK: National Bank of Kuwait (NBK) was established in 1952 as the first national bank and the first joint stock company in Kuwait and the Arab Gulf region. NBK achieved profits of USD 1. 9 billion (KD 600.1 million) in 2024, while the Bank's total assets reached USD 130.9 billion (KD 40.3 billion) by the end of 2024, and shareholders' equity reached USD 12. 7 billion (KD 3. 9 billion). NBK is the largest conventional financial institution in Kuwait and has actual predominance in the commercial banking sector. The bank has consistently retained the highest credit ratings among all banks in the region, as affirmed by renowned global ratings agencies such as Moody's, Standard & Poor's, and Fitch. Noteworthy is NBK's extensive network, encompassing branches and subsidiaries across key global financial hubs, including China, Geneva, London, Paris, New York, and Singapore. Additionally, NBK maintains a robust regional presence in Lebanon, Egypt, Bahrain, Saudi Arabia, Iraq, and the UAE. NBK Long-Term Rating • Moody's Credit Rating: A1 • Fitch Ratings: A+ • Standard & Poor's Rating: A
