National Bank of Kuwait SAKP (NBK) Q3 2024 earnings summary

Executive summary

• Net profit for the first nine months of 2024 reached KWD 485.7 million, up from KWD 451.0 million year-over-year, with Q3 net profit at KWD 164.6 million, up 5.7% year-over-year and 12.9% sequentially.

• Maintains leading market position in Kuwait with over 30% asset market share and strong brand value.

• Operations span 13 countries, with international business contributing about 25% of group profits.

• Diversified business model across geographies and segments, with strong contributions from Boubyan Bank and NBK Wealth.

• Continued focus on digital innovation, operational efficiency, ESG principles, and regional expansion.

Financial highlights

• Net operating income for nine months was KWD 931 million, up from KWD 863.8 million year-over-year; net interest income grew to KWD 733.7 million.

• Customer deposits rose to KWD 22.41 billion from KWD 20.93 billion year-over-year.

• Total assets increased to KWD 39.16 billion from KWD 36.84 billion as of 30 September 2023.

• Operating expenses increased 10.4% to KWD 342.5 million; cost-to-income ratio at 36.8% for nine months 2024.

• Credit provisions and impairment losses decreased to KWD 56.3 million; cost of risk at 34 bps.

Outlook and guidance

• Loan growth for 2024 expected in the mid-single digit range, with potential for high single digit as project activity accelerates.

• Full-year NIM expected to remain around 2.69%, with limited impact from Q4 rate cuts.

• Operating expense growth for 2024 expected below 10%, cost-to-income ratio to remain in high 30s.

• Cost of risk guidance for full year at 35-40 bps.

• Committed to ESG goals, including carbon neutrality by 2060 and USD 10bn in sustainable assets by 2030.