National Bank of Kuwait SAKP (NBK) Q1 2026 earnings summary

Executive summary

• Net profit for 1Q 2026 was KD 146.7 million, up slightly from KD 145.1 million year-over-year.

• Net operating income increased by 6.6% year-over-year to KD 331.2 million.

• Operating surplus rose 4.8% year-over-year to KD 204.3 million.

• Return on average assets was 1.33% and return on average equity was 13.1% for 1Q 2026.

• Interim consolidated financials for the three months ended 31 March 2026 were reviewed by independent auditors, with no material misstatements or regulatory violations identified.

Financial highlights

• Net interest income and net income from Islamic financing grew to KD 248.1 million from KD 236.8 million year-over-year.

• Non-interest income rose 12% year-over-year to KD 83 million, with notable increases in fees, commissions, and FX gains.

• Operating expenses increased 10% year-over-year to KD 127 million.

• Provision charges for credit losses and impairment rose to KD 26.8 million from KD 21.5 million.

• Basic EPS was 13 fils, down from 14 fils year-over-year.

Outlook and guidance

• Loan growth guidance for 2026 is mid to high single digits, compared to 1.7% year-to-date growth in 1Q 2026.

• Net interest margin expected to remain around 2.28% for 2026.

• Cost of risk is expected to rise to around 40bps in 2026.

• Capital adequacy ratio guidance is 16.4% for 2026.

• The Group acknowledged increased macroeconomic uncertainties and unfavorable business conditions due to recent geopolitical conflict in the Middle East.