Al-Sayer:

  • Our flexible business model enables us to overcome crises and confirms our ability to continue to grow our profits in the near future
  • We support our customers by providing financing and advisory services to help them navigate the crisis while meeting their long-term financial obligations
  • We apply the principles of sound corporate governance, the key pillar for achieving sustainable development for our business
  • We are committed to our social responsibilities supporting the efforts of the government and the civil society in containing the pandemic
  • We are proud of the exceptional efforts of our employees during the crisis, confirming once again that NBK’s most valuable asset is its human capital

Al-Sager:

  • NBK steadily withstands crises, and our capabilities qualify us to be the largest beneficiary as we proceed to recovery
  • Our financial results demonstrate the success of our diversification and digital transformation strategies, as well as our prudential risk management
  • Despite the crisis, we continued with our conservative approach and increased provisions as a precaution considering the level of uncertainty
  • Our financial position is solid, supported by stable deposits, strong capitalization and asset quality levels, and comfortable liquidity
  • We are reaping the benefits of our focus on core banking activities and our operating income remains strong despite the challenges
  • We balance between our cost-cutting initiatives and investing to ensure achieving our strategic goals

Kuwait: National Bank of Kuwait (NBK) posted a net profit of KD 168.7 million (USD 550.9 million) for the first nine months of 2020, compared to KD 302.2 million (USD 986.8 million) for the same period last year; dropping by 44.2% year-on-year.

As for the three months period ended 30 September 2020, the bank recorded a net profit of KD 57.6 million (USD 188.1 million) which included a one-off profit from the sale of the Bank’s old headquarter. 3Q2020 profits grew at 72.3% when compared to 2Q2020 profits while recording a year-on-year drop of 38.1% compared to 3Q2019.

Commenting on the Bank’s results for the first nine months 2020, Mr. Nasser Al-Sayer, The Chairman of the Board of Directors of National Bank of Kuwait, said: “The negative effects due to the outbreak of COVID19 remained the main highlight of the global economic scene despite some signs of recovery during the third quarter. An economic downturn in the GCC was much felt with lower oil prices pressuring fiscal positions.”

Al-Sayer pointed out that despite the challenging operating environment, and its clear impact on the profits of the banking sector, the Bank’s financial results during the first nine months of the year demonstrated the Bank’s flexible business model and solid position, while continuing to benefit from its diversification and digital transformation strategies. This underpins the Bank’s ability to withstand the fallout of the crisis, and to continue growing its profits as we gradually move ahead to a recovery phase.

Al-Sayer added that, in light of these exceptional circumstances, and through its highly professional cadres, the Bank continued providing support to its customers through financing, advisory and top-tier banking services; enabling them to overcome their challenges and meet their long-term obligations.

Al-Sayer affirmed that NBK remains committed towards all stakeholders under all circumstances. The Bank’s mission is to provide top-tier banking services to its customers, maximize the benefit to its shareholders, and perform its social responsibilities. This was clearly demonstrated since the outset of the crisis as we have been regularly supporting the government’s and civil society’s efforts to contain the pandemic. In addition, NBK is committed to implementing the principles of sound governance, which is a cornerstone of sustainable development for all of the Bank's business.

Al-Sayer extended his thanks and appreciation to NBK employees for the exceptional efforts, sense of responsibility and teamwork spirit they showed during these exceptional circumstances. Their efforts continue to be a source of pride, and proves that NBK's human capital is the key pillar for achieving the Group’s future goals and long-term vision.

Al-Sayer concluded: "On behalf of the Bank’s board members and all employees, we mourn with great sadness and sorrow the demise of HH the late Emir of Kuwait, Sheikh Sabah Al Ahmad Al Sabah.  We are confident that his successor, HH Sheikh Nawaf Al Ahmad Al Sabah, the Emir of Kuwait, shall continue the legacy towards a prosperous future and stability for Kuwait.”

On his part, Mr. Isam Al-Sager, NBK Group CEO said: “NBK’s operations are not fenced from the repercussions of the pandemic on economic activity. However, our financial results demonstrate the success of our proactive strategy that we started years ago, aiming to diversify income sources and to increase our digital reach. Moreover, our financial performance during those critical times also reflect our prudential risk management and success in building a flexible business model that is capable of withstanding abnormal conditions and realizing the utmost benefits from future recovery.”

"Despite the consequences of the crisis we remained committed to our conservative approach. During the first nine months of the year, we continued building provisions in anticipation of the expected uncertainties and the difficult operating circumstances across many sectors. Our provision and impairment charges increased by 98.4% year-on-year for the nine months period.” Al-Sager indicated.

Al-Sager added that NBK enjoys a solid financial position thanks to its diversified and stable deposit base, strong capitalization, high asset quality and comfortable liquidity levels.  Furthermore, the strong financial position was reflected in the growth of the Bank's balance sheet, as both, loan portfolio and customer deposits achieved remarkable growth during the first nine months of the year.

Al-Sager also highlighted that the Bank’s approach towards cost cutting is to strike a balance between key efficiency initiatives at the Group level to mitigate the impact on profitability, while continuing to invest to achieve our strategic expansion goals in key markets. Moreover, the accelerated implementation of the Bank’s Digital Transformation Roadmap contributed to the launch of many digital banking services and advanced payment solutions over the past months, which were well-received by all customer segments.

Concluding his statements, Al-Sager stressed that NBK has always managed to overcome exceptional circumstances and is able to utilize its resources to be the largest beneficiary from opportunities created amid economic recovery.

 Performance and operating highlights:

  • Net operating income of KD 632.4 million (USD 2.1 billion) for the first nine months of 2020, decreasing by 6.0% compared to the same period in 2019
  • Total assets grew by 5.1% year-on-year as of end of September 2020, to KD 30.4 billion (USD 99.2 billion).
  • Total loans and advances grew by 7.8% year-on-year to KD 17.6 billion (USD 57.6 billion).
  • Customer deposits increased by 10.8% year-on-year to KD 17.5 billion (USD 57.1 billion),
  • Strong asset quality metrics, with NPL/gross loans ratio at 1.89% and an NPL coverage ratio of 191.0%
  • Robust Capital Adequacy Ratio of 17.0%, comfortably in excess of regulatory requirements

About National Bank of Kuwait (NBK):

NBK was founded in 1952 as the first home-grown bank and the first joint stock company in Kuwait and the Gulf Region. NBK reported net profits of USD 1.3 billion (KD 401.3 million) for 2019. NBK's total assets were USD 96.6 billion (KD 29.3 billion) at the end of 2019, while shareholder equity stood at USD 10.6 billion (KD 3.2 billion).

NBK is the largest financial institution in Kuwait with effective market dominance in the commercial banking market and has been consistently awarded the highest credit rating of all banks in the region from Moody's, Standard & Poor's, and Fitch Ratings. NBK also stands out in terms of its local and international network, which includes branches, associates and subsidiaries in China, Geneva, London, Paris, New York, and Singapore alongside its regional presence in Lebanon, Jordan, Egypt, Bahrain, Saudi Arabia, Iraq, Turkey, and the UAE.

Long-term credit ratings:

  • Moody’s A1
  • Fitch Ratings AA-
  • Standard & Poor’s A                                                         
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