Latest news with #NationalBankofKuwait
Kuwait Times
14 hours ago
- Business
- Kuwait Times
NBK reports KD 315.3 million in net profit for six-month period of 2025
NBK reports KD 315.3 million in net profit for six-month period of 2025 Bank's strong performance reflects its ability to navigate varying economic conditions KUWAIT: National Bank of Kuwait (NBK) has announced its financial results for the six-month period ended June 30, 2025, reporting a net profit of KD 315.3 million ($1.0 billion), compared to KD 292.4 million ($957.8 million) for the corresponding period in 2024, marking a year-on-year increase of 7.8 percent. Profit before tax reached KD 401.5 million ($1.3 billion) during the period, marking a 17.0 percent increase compared to KD 343.1 million ($1.1 billion) in the corresponding period of 2024. As of the end of June 2025, total assets rose by 15.9 percent year-on-year to KD 43.6 billion ($143.0 billion), while total loans and advances grew by 12.1 percent year-on-year, reaching KD 25.5 billion ($83.5 billion). Customer deposits grew by 9.5 percent on an annual basis, reaching KD 23.9 billion ($78.2 billion) by the end of June 2025. Meanwhile, shareholders' equity reached KD 4.2 billion ($13.9 billion), reflecting a growth of 10.3 percent 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, 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 US 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 March 31, 2025 and the estimated environmental impact during the reporting period. Isam J Al-Sager NBK Group Vice Chairman and CEO Hamad Al-Bahar NBK Group Chairman Sustainable growth Meanwhile, 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 percent year-on-year to reach KD 631.4 million ($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 H1 2025. 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 $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 $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 H1 2025 •Net operating income stood at KD 631.4 million ($2.1 billion), up 3.1 percent year-on-year. •Total assets grew by 15.9 percent year-on-year, at KD 43.6 billion ($143.0 billion). •Total loans and advances increased by 12.1 percent year-on-year to KD 25.5 billion ($83.5 billion) •Customer deposits grew by 9.5 percent year-on-year to KD 23.9 billion ($78.2 billion). •Shareholders' equity amounted to KD 4.2 billion, ($13.9 billion) registering an annual growth of 10.3 percent. •Strong asset quality metrics, with NPL/gross loans ratio at 1.33 percent and an NPL coverage ratio of 252 percent. •Robust Capital Adequacy Ratio of 16.4 percent, comfortably exceeding regulatory requirements. Hamad Al-Bahar The Bank's strong financial performance underscores its ability to adapt effectively to shifting economic conditions
Arab News
a day ago
- Business
- Arab News
Kuwait economy rebounds in Q1 with 1% growth
RIYADH: Kuwait's economy returned to positive territory in the first quarter of 2025, recording a 1 percent year-on-year increase in real gross domestic product, according to a report from the National Bank of Kuwait. The rebound marks the end of seven consecutive quarters of contraction, driven primarily by a gradual recovery in the non-oil sector. The bank's analysis noted that the non-oil economy continued to expand, supported by sustained momentum in manufacturing, real estate, and transportation sectors, while the impact of previous oil production cuts has begun to fade. In parallel, Kuwait's oil production began increasing in April, adding 135,000 barrels per day, which is expected to benefit the overall economy in the coming months despite still-muted gains from the oil sector. The growth comes as the World Bank and the International Monetary Fund project that the GCC economy will grow by around 3.2–3.5 percent in 2025, supported by the rollback of OPEC+ production cuts and ongoing efforts to diversify the economy, despite global headwinds. NBK's analysis stated: 'With the negative effects of earlier voluntary oil production cuts beginning to fade, oil GDP recorded only a marginal decline, the softest since Q2 2023.' Growth in Kuwait's non-oil sector slowed to 2 percent year-on-year in the first quarter of 2025, down from 4 percent in the previous quarter, reflecting a moderation in manufacturing activity. Meanwhile, the oil sector contracted by 5.7 percent year on year, compared to a 0.3 percent contraction in the same period of 2024. Average oil output in the first quarter declined to 2.4 million bpd, an annual drop of 0.7 percent. However, NBK's report pointed to a likely improvement starting in the second quarter of this year, as Kuwait began unwinding OPEC+ production cuts in April, which could raise output to 2.2 million bpd. 'Originally planned to be unwound over the course of 18 months, OPEC+ has accelerated the pace of supply hikes with output now on a path to be fully restored in September, a full year ahead of schedule,' the report stated. This, combined with ongoing support for non-oil activity and the implementation of key public investment projects, is expected to help stabilize GDP growth. Across the Gulf region, the economic performance in the first quarter of 2025 also showed broad strength. Saudi Arabia reported a robust 3.4 percent year‑on‑year rise in GDP, driven by a 4.9 percent expansion in non‑oil activities, while oil output fell slightly by 0.5 percent, according to GASTAT. The UAE's non-hydrocarbon economy continued to drive growth, supporting full-year GDP forecasts of around 4.4 percent, underpinned by steady oil output and surging sectors of services, construction, and trade. CPI up Consumer prices in Kuwait rose in June, with the Consumer Price Index increasing by 0.29 percent from the previous month to 136.9. On an annual basis, inflation reached 2.32 percent compared with June 2024. The food and beverage group recorded the highest annual increase at 5.11 percent, driven by rising costs across categories including cereals, meat, dairy products, and vegetables. Other notable annual increases included clothing and footwear with 3.93 percent, miscellaneous goods and services with 4.80 percent, and health at 2.94 percent. Conversely, the transportation group recorded a decline of 1.81 percent year on year.
Kuwait Times
4 days ago
- Business
- Kuwait Times
NBK marks milestone with $800 million Additional Tier 1 bond listing on LSE
The largest issuance within the bank's Tier 1 Additional capital instruments KUWAIT: National Bank of Kuwait (NBK) celebrated the listing of its $800 million Additional Tier 1 bond on the London Stock Exchange. This milestone highlights the Bank's strong and growing presence in global capital markets and reaffirms NBK's expansive global footprint, with a branch network spanning four continents across 13 countries. Among its key international markets, London holds strategic importance through National Bank of Kuwait (International) PLC (NBK- London), which delivers a full spectrum of banking products and services to its clientele. The listing ceremony took place at the London Stock Exchange — one of the world's leading financial marketplaces — with the participation of senior executives from NBK and NBKI (NBK-London). Leading the occasion were Zaid Al-Sager, Deputy CEO – International Banking Group at NBK; Meshari Bin Salamah, EVP - Global Head of Corporate Banking and Commercial Real Estate and Bassem Boustany, Managing Director of National Bank of Kuwait, London (NBK International) and Abdul Amir Fadel EVP - Global Head of Consumer Banking – IBG. The event underscores the bank's strategic commitment to diversifying its funding base and reinforcing its footprint across international capital markets. The listing of the bonds on the London Stock Exchange reinforces NBK's ongoing commitment to deepening its long-standing relationships with leading global exchanges. It also reflects the growing confidence in the Bank's robust credit profile, as demonstrated by the consistently strong demand for its debt issuances across international markets. LONDON: During the celebration of National Bank of Kuwait (NBK)'s listing of its $800 million Additional Tier 1 bond on the London Stock Exchange. The successful issuance and listing of the bonds on the London Stock Exchange underscores NBK's leadership in the regional banking landscape and reflects its strategic vision for global expansion. It is a testament to the Bank's long-standing legacy of excellence, innovation and prudent growth. This issuance marks the bank's largest to date under this tranche, driven by robust investor demand that enabled an upsizing beyond initial expectations. Following a brief pause in GCC bond activity within the first tranche of additional capital — after a wave of issuances in May — NBK's transaction drew robust interest from a globally diversified investor base. Investor appetite for the issuance was exceptionally strong, with subscription orders reaching $2.2 billion, representing a 2.75x oversubscription rate. Demand was driven by a broad and diversified base of global investors and financial institutions, with private banking platforms playing a pivotal role in the placement process. The results underscore investor confidence in NBK's robust credit profile and reaffirm Kuwait's standing as an appealing investment destination. MENA-based investors represented the largest share of the allocation, accounting for 47 percent of total demand, followed by investors from the United Kingdom at 19 percent, the United States at 18 percent, Europe at 13 percent, and Asia at 3 percent. By investor type, asset managers and investment funds accounted for 48 percent of total demand, followed by banks and private banking services at 44 percent, while sovereign entities, insurance companies, and pension funds represented the remaining 8 percent of total subscription applications. Robust investor demand enabled NBK to achieve highly favorable pricing for the issuance, with the final yield set at 6.375 percent ( percent (equivalent to UST+240.3bps), representing a 50 basis point tightening from the initial price thoughts (IPTs) of 6.875 percent. The investment-grade credit rating of the issuance, including a Baa3 rating from Moody's, further enhanced its appeal — driving strong interest from international private banking platforms and global asset managers. Citigroup, JP Morgan, HSBC, and Standard Chartered acted as Global Coordinators for the issuance, while the Joint Lead Managers included Citigroup, JP Morgan, HSBC, Standard Chartered, First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank, KAMCO Investment Company, and National Bank of Kuwait. •The listing underscores NBK's deep-rooted relationship with one of the world's most prominent stock exchanges • Robust investor appetite reflects global confidence in NBK's strong credit fundamentals and regional leadership
Kuwait Times
15-07-2025
- Business
- Kuwait Times
Abyat joins NBK Rewards Program
Abyat joins NBK Rewards Program In light of NBK's commitment to enriching the customer experience KUWAIT: Reflecting its commitment to enriching the banking experience of its customers by providing exclusive offers and special rewards, National Bank of Kuwait announced the joining of Abyat, a leading company specialized in retail furnishing and finishing materials, to the NBK Rewards Loyalty Program. This exciting new partnership brings NBK Credit and Prepaid Cardholders an exclusive opportunity to earn 5 percent or redeem their NBK Rewards Points on their purchases at Abyat when spending KD 100. Starting Wednesday, NBK customers can enjoy benefits when shopping for furniture at Abyat. Whether renovating or simply refreshing a space, customers now have more reason to shop at Abyat with their NBK Credit or prepaid cards. The earned NBK Rewards points can be fully or partially redeemed for purchases at all participating outlets immediately through POS terminals. On this occasion, Homoud Al-Nasrallah SVP – Head of Merchant Business and Customer Loyalty Management commented: 'We always strive to strengthen our ties with leading companies across different fields and widen our network of partners within the NBK Rewards Program, as we hope to elevate and enrich our customers' banking experience and enhance the rewards and benefits when they use their NBK Credit and Prepaid Cardholders at their favorite outlets. Therefore, we're thrilled to welcome Abyat to the NBK Rewards Program. This partnership is a reflection of our commitment to giving NBK customers more value from the brands they already love - and Abyat is a household name when it comes to home solutions in Kuwait.' Al-Nasrallah also highlighted that to benefit from this offer, customers simply need to spend KD 100 or more using their NBK Credit or Prepaid cards in-store at Abyat. The 5 percent NBK Rewards points will be automatically credited to the rewards center, making home shopping even more rewarding. The NBK Rewards Program is Kuwait's largest loyalty program, offering unmatched savings and benefits across more than 800 partner outlets from retail and dining to entertainment and health and wellness centers.
Arab Times
15-07-2025
- Business
- Arab Times
Abu Shukri, Türkiye & Özal
My friend and colleague, the banker Ibrahim Dabdoub, known affectionately as Abu Shukri, is perhaps the most renowned bank manager in Kuwait. Abu Shukri led the National Bank of Kuwait (NBK) under the most difficult circumstances, delivering outstanding results for shareholders and mentoring a remarkable generation of leaders, including NBK's CEO Issam Al- Saqr and CEO of Boubyan Bank Adel Al-Majed. He began his career at NBK after completing his studies at a Turkish institute in Kuwait in 1961. Thanks to his exceptional skills, he quickly rose to become Director of the Loan Department. In 1980, he was appointed Deputy Chairman of the General Managers, and three years later, he became the CEO. After more than thirty years at the helm, he stepped down from daily management to serve as Secretary of the bank's Board of Directors for a period. In 2014, he graciously invited me and others to a celebration honoring his retirement. During his tenure as CEO, Abu Shukri skillfully steered the bank through two of the most severe crises any financial institution could face. The first came in 1982 during the stock market collapse, known as the 'Souq Al-Manakh' crisis, and the second during the devastating invasion of Kuwait by Saddam Hussein in August 1990. At the time, he was leading a workforce of over 1,500 employees, overseeing 50 local branches and a wide international network that extended across the Gulf, Hong Kong, Lebanon, London, New York, Geneva, and beyond. He rightfully earned numerous accolades for his leadership, most notably the 'Best Banker of the Year' award in 1995, presented by both the Arab Bankers Association and the Union of Arab Banks. Speaking about Abu Shukri is not merely a tribute to someone I have always enjoyed knowing, but also to his deep experience, sharp wit, and ever present smile, even in the face of difficult personal and family circumstances. I sincerely hope he is doing well. What prompted today's discussion is an old interview that recently resurfaced online. It highlighted our mutual friendship with the late President of Türkiye Turgut Özal, the architect of Turkiye's modern renaissance after Atatürk. I first met Özal when he was Turkiye's ambassador to Kuwait. At the time, he lived near our old family home. During his ambassadorship in the early 1980s, Özal actively encouraged me and a group of Kuwaiti businessmen, including Yaqoub Al-Jouan, Yassin Al-Enezi, and Abdulaziz Al- Mukhaizeem to invest in Türkiye. He later returned to Türkiye where he went on to serve as Minister of Planning, Prime Minister, and ultimately President of the Republic. During his rise, Özal extended an invitation to us, offering free government land in exchange for building tourism projects. He also proposed buying back Türkiye's European loans at a 45 percent discount and using the proceeds, converted into lira, to fund local construction materials and labor costs. It was an enticing offer. I traveled to Türkiye with one of the investors to explore the opportunity. However, we couldn't agree on a plot of land due to security concerns. The available sites were either next to the presidential palace, near the army commander's residence, or overlooking the intelligence headquarters. Compounding our hesitation were Türkiye's precarious economic conditions at the time, debt defaults, soaring inflation, and banks offering deposit interest rates nearing 90 percent. These factors led us to decline the offer. In hindsight, it became clear that our decision was a missed opportunity. Under Özal's leadership, Turkey rose, advanced, and achieved remarkable economic transformation. In the interview, Abu Shukri recalls meeting Turgut Özal at the Turkish ambassador's residence during Özal's official visit to Kuwait. At the time, Özal appealed for support to help ease Türkiye's economic hardship, as global banks had ceased lending to the country. While Abu Shukri declined direct investment, he proposed purchasing Kuwaiti oil with financing provided by the National Bank of Kuwait. That is exactly what happened. The initial purchase order amounted to $60 million, which Türkiye repaid a few months later. The contract was renewed several times. NBK's initiative was highly appreciated by the Turkish government and played a pivotal role in restoring confidence among international banks in the Turkish economy.
