• The Bank’s asset quality remains stable, taking into account its strong capitalization
  • The bank’s ratings reflect its strong franchise in Kuwait and increasing geographic diversification
  • NBK has maintained its NPL ratio below 1.5% and its cost of risk under 50 basis points since 2022
  • The loan portfolio registered robust annualized growth of 13% in the first nine months of 2025

S&P Global Ratings announced that it has upgraded the credit rating of National Bank of Kuwait (NBK) from ‘A’ to ‘A+’, with a Stable Outlook.

The agency explained that the upgrade reflects NBK’s position as the largest and most systemically important bank in Kuwait, and affirmed the short-term rating at ‘A-1’.

S&P Global Ratings noted that the ratings assigned to NBK reflect the Bank’s strong franchise in the Kuwaiti market and its increasing geographic diversification, with 26% of operating income generated outside Kuwait in the first nine months of 2025.

Furthermore, the agency affirmed that rising domestic lending opportunities, coupled with the strategic expansion of its loan portfolio across key international markets, including the GCC, the United States, Europe, and Asia, supported robust annualized loan growth of 13% in the first nine months of 2025.

The agency added that the Bank has kept its nonperforming loan (NPL) ratio below 1.5% and cost of risk under 50 basis points since 2022.

Asset quality is expected to remain stable, while S&P also factors in the bank's strong capitalization. The Bank’s risk-adjusted capital (RAC) ratio is projected to stay within the 10.5%–11.0% range over 2025–2026, compared with 10.9% in 2024.

The global rating agency explained that the Bank’s long-term rating now stands two notches above its stand-alone credit profile (SACP) of ‘a-’. This reflects its view of a higher likelihood of extraordinary government support for NBK if needed, given the Bank’s significant systemic importance in Kuwait.

Moreover, S&P Global Ratings highlighted NBK’s dominant market position, noting that the Bank holds a market share exceeding 30% of the domestic banking sector, with a strong presence in both retail and corporate banking. It also underscored the high level of support that the Kuwaiti government extends to the local banking system, backed by a consistent record of assistance when needed. In addition, S&P’s assessment incorporates its expectation that NBK would receive additional help from Kuwait, given its very close proximity and importance to the government.

The agency also raised the long-term ratings of NBK’s core subsidiaries, National Bank of Kuwait (International) PLC (NBKI) in London and National Bank of Kuwait–France S.A. (NBK-France) to ‘A+’ from ‘A’, while affirming the short-term ratings at ‘A-1’ and maintaining the Stable Outlook. It likewise affirmed the ‘A-1’ short-term ratings on National Bank of Kuwait SAKP (New York Branch) and on the bank’s $5 billion commercial paper program.

It stressed that Kuwait’s fiscal reform momentum and reduced fiscal funding constraints will drive economic growth, noting that the newly implemented financing and liquidity law will ease hard budgetary constraints and pave the way for comprehensive financing arrangements over the medium to long term.

Additionally, it also noted that despite lower oil prices, easing fiscal funding constraints, a modest increase in oil production, and large-scale capital projects are expected to support Kuwait’s economic growth. Real GDP growth is projected to accelerate to an average of 2% over 2025–2028, following two consecutive years of economic contraction.

Earlier this month, S&P Global Ratings upgraded Kuwait’s sovereign credit ratings to ‘AA-/A-1+’, stating that the upgrade reflects reform momentum and reduced fiscal funding constraints, which will support economic growth in the country.

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+