DOHA: National Bank of Kuwait (NBK) reported net profits of $514m (KD144.8m) for the first half of 2014 compared with $456m (KD128.5m) for the same period in 2013, registering year-on-year 12.6 percent growth.
As of end of June 2014, NBK Group’s total assets reached $71.1bn (KD20.0bn) up 11.7 percent compared to June 2013, while total shareholders’ equity increased by 5.3 percent year-on-year to $8.9bn (KD2.52bn). Customer loans and advances reached $40bn (KD11.3bn) as of end of June 2014, growing at 9.6 percent year-on-year, while customer deposits grew by 7.7 percent for the same period to reach $38.7bn (KD10.9bn). NBK asset quality remained exceptionally strong with NPLs or gross loans improving to 1.81 percent as of end of June 2014 and NPL coverage reaching 229.6 percent.
Isam Al Sager, NBK’s Group Chief Executive Officer, said: “with net profits growing at 12.6 percent year-on-year, NBK continues delivering solid results. NBK’s conservative management practices and its strong financial position helped the bank sustain its profitability and resilient market position.”
Al Sager highlighted that the operating environment in Kuwait continues to show strong signs of improvement reflecting a pickup in economic activity and accordingly better banking sector performance. “There is a noticeable improvement in the process of tendering, award and execution of the large infrastructure projects, which has also reflected positively on the overall private sector sentiment and accordingly on banks’ credit growth. This is a trend we hope will continue.” Al Sager added.
“NBK continued to focus on core banking activities in and outside Kuwait as the main driver of income growth. In the H1, 2014, net operating income grew 6.2 percent year-on-year to $1,177m (KD331.7m).” Al-Sager added.
Al Sager also reaffirmed NBK’s strategic direction as a leading bank in Kuwait and the region with the aim of further diversifying its income sources. In Kuwait, the bank continued to strengthen its market position, while the acquisition of 58.4 percent stake in Boubyan Bank in 2012, remains a differentiator to NBK’s operations in Kuwait as Boubyan continues to offer strong growth outlook for the Group.
Regionally, the performance of NBK’s international and regional operations continued to deliver healthy performance, emphasising the bank’s position as a leading regional bank. In H1, 2014, NBK’s international operations contributed 23 percent to the group’s profits despite the ongoing political challenges is some of the locations. The Peninsula
