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Kuwait Times
21-05-2025
- Business
- Kuwait Times
Zaid Al-Sager shares key insights at Bonds, Loans & Sukuk Mideast conference in Dubai
Event brings together top regional and international finance leaders KUWAIT: The National Bank of Kuwait (NBK) was a silver sponsor and participated in a senior panel discussion at the Bonds, Loans & Sukuk Middle East Conference 2025, held on May 20-21 at the Madinat Jumeirah Conference Centre in Dubai. The event brought together senior finance leaders from both regional and international financial institutions to examine the shifting landscape of the syndicated loan markets in the Middle East, with particular attention to pricing developments, sustainability considerations, and heightened competitive dynamics. Zaid Al-Sager, Deputy CEO of the International Banking Group at NBK, joined an expert panel of global financial leaders to examine the critical factors shaping syndicated lending activity in 2025. The panel began with a market pulse survey to gauge expectations for the rest of the year. Sentiment was largely cautious due to the current macroeconomic headwinds and geopolitical uncertainty, both of which have continued to weigh in on deal volumes. The conversation, however, quickly transitioned toward addressing practical solutions, including strategic positioning and adaptability to the current environment. Panelists observed that over the past year, the syndicated loan markets have contended with higher liquidity among financial institutions that has resulted in margin compression, which has led regional lenders with a footprint in Europe and the US to search for higher yields in those markets that supports bolstering their P&Ls. Meanwhile, borrowers in the region, while facing reducing funding costs over the last few quarters, also maintain higher liquidity as a result of de-leveraging post-COVID. As such, much of the syndicated borrowing during the last 12 months has been related to GRE-related entities requiring support on large-scale infrastructure projects in the region. Another key point of discussion was the growing complexity of competition between regional and international lenders. Despite the continued expansion of global liquidity, particularly from Asia, regional financial institutions retain a competitive advantage in the regiongiven their deep regulatory insight and strong relationships with clients in the region. The panel also explored the integration of ESG principles into syndicated loan structures. Although frameworks remain in development, there is a growing convergence between lenders and borrowers around sustainability-linked targets. These considerations are progressively influencing underwriting standards, as banks align their portfolios with broader responsible finance goals. Currency diversification also emerged as a central topic. Amid ongoing US dollar volatility, borrowers are increasingly exploring alternative funding currencies to better manage exposure and optimize pricing. The conversation further examined the growing role of Islamic finance in loan syndications, supported by structural innovation that is broadening market participation. Looking forward, participants identified several key forces expected to shape the lending environment in 2025, including declining oil prices, the expanding role of private credit, and evolving structures in deal-making. The Bonds, Loans & Sukuk Middle East Conference remains a cornerstone event in the region's financial calendar, providing a platform for industry leaders to engage on capital market developments. Since its inception, the conference has facilitated meaningful dialogue on syndicated finance, ESG integration, and regional competitiveness – particularly in light of the GCC's economic diversification agenda and energy transition goals. NBK's participation reaffirmed its role as a regional leader in syndicated lending and highlighted its commitment to providing tailored financing solutions in an evolving market landscape. In 2024, NBK successfully issued its inaugural $500 million green bond, which was oversubscribed more than three times, signaling strong investor confidence in the bank's sustainable finance framework. Furthermore, NBK was recognized by Global Finance Magazine as the 'Best Bank for ESG-Related Loans in the Middle East 2024,' reflecting its ongoing integration of sustainability principles into its lending practices.
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
