National Bank of Kuwait SAKP (NBK) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months of 2025 reached KD 498.4 million, up from KD 485.7 million year-over-year, with profit before tax rising 11.3% to KD 593 million.

• Net operating income for 9M 2025 was KD 969 million, up 4.1% year-over-year.

• The bank's strategy focuses on innovation, digital banking, ESG, and regional expansion, with notable ESG rating upgrades.

• Interim consolidated financials for the nine months ended 30 September 2025 were reviewed by EY and Deloitte, with no material misstatements or regulatory violations identified.

Financial highlights

• Net interest income and net income from Islamic financing reached KD 749 million, up 2.1% year-over-year.

• Non-interest income rose 12% to KD 220 million, with fees and commissions up 7% and FX income up 25%.

• Operating expenses increased 6.5% to KD 365 million; cost-to-income ratio at 37.6%.

• Credit provisions and impairment losses dropped to KD 11.9 million from KD 56.3 million in 9M 2024.

• Total assets increased 15% year-over-year to KD 44.9 billion; customer deposits up 10% to KD 24.6 billion.

Outlook and guidance

• Full-year 2025 loan growth guidance upgraded to low double-digit range.

• NIM expected to remain under pressure due to macroeconomic uncertainty and competition.

• Cost growth for the full year expected to be similar to 6.5% reported for 9M 2025; cost-income ratio to remain in high 30s.

• Cost of risk for 2025 expected to normalize to around 40 basis points.

• Effective tax rate for 2025 estimated at 16%-17% of pre-tax profit.