Kuwaiti newspaper newspaper | NBK profits 254.8 million dinars in...


Musaed Al-Sayer: The growth of our profits confirms the solidity of our financial position and the success of our plans for diversification and digital transformation
• Issam Al-Sager: Our strong earnings confirm the prudence of our risk management strategy and our historically hedged approach.

The National Bank of Kuwait announced its financial results for the first nine months of 2021 ending on September 30, recording a net profit of 254.8 million dinars ($844.8 million) during that period, a growth of 51.1 compared to the same period of 2020, in which the bank recorded net profits of 168.7 million dinars (559.2 million dollars).

The bank recorded a net profit in the third quarter of the year, ending on September 30, 2021, of 94.1 million dinars ($311.8 million), a growth of 63.3 percent on an annual basis.

Total assets as at the end of September grew by 7.0 percent on an annual basis, reaching 32.5 billion dinars ($107.8 billion).

Total loans and advances amounted to 19.0 billion dinars (62.9 billion dollars), an increase of 7.5 percent year on year.

Total shareholders' equity amounted to 3.4 billion dinars ($11.4 billion), an increase of 8.5 percent on an annual basis.

Commenting on the financial results achieved for the first nine months of 2021, NBK Group Chairman Nasser Musaed Al-Sayer said: “The pace of our profits growth accelerated in the first nine months of the year despite the continuing challenges in the operating environment, which confirms what NBK enjoys. From a solid financial center, resilient business model, and the success of his proactive strategy for diversification and digital transformation.”

Al-Sayer pointed out the importance of the integration of the group’s operations in terms of providing conventional and Islamic banking services through Boubyan Bank, the Islamic arm of the group, and the geographical spread in the main markets in the region and the world, and what this integration represents as a fundamental pillar of the national superiority and its ability to overcome crises and stimulate the sustainable future growth of the group’s business.

Al-Sayer stressed that the bank will continue to play its national role in supporting the economy, based on huge capabilities, a diversified and stable deposit base, and convenient liquidity that enhances its ability to finance the state’s efforts to promote economic recovery, amid expectations of an acceleration in the pace of project awarding and an increase in government capital spending during the current fiscal year.

He stressed NBK's commitment to maximizing returns for all stakeholders by working to provide distinguished services to customers and achieving maximum benefit for shareholders through a balance between maintaining profitability and continuing future growth in conjunction with carrying out the bank's societal responsibilities, which have been strongly present since the beginning of the crisis to support the efforts of the state. and civil society in response to the pandemic.

He added: "We are keen to play a future role in supporting efforts aimed at achieving carbon neutrality and combating climate change at the level of Kuwait and the region, and this qualifies us for our unremitting efforts related to the application of governance rules and environmental, social and institutional sustainability standards, and our successes during the last period in applying the best international standards related to sustainability."

He expressed, "We look forward to continuing expansion in all the markets in which we operate, benefiting from the recovery of the economies of the region and the world, the improvement in oil prices, and the direction of central banks to ease their accommodative policies amid maximizing the full use of our capabilities and expertise that qualifies us to be the largest beneficiaries of the recovery."

For his part, Issam Jassem Al-Sager, CEO of NBK Group, said: “The strong growth in our profits confirms the success of our prudent risk management strategy, which comes within the framework of our historically hedged approach, which reflected positively on net profits as a result of the improvement in the cost of risks in conjunction with the start of recovery and a gradual return to normal life. This is consistent with our vision since the start of the crisis.”

Al-Sager added: “We previously confirmed that QNB will be among the biggest beneficiaries of the recovery thanks to its flexible business model, digital superiority and focus on basic banking activities.

He pointed out that the strong growth in profits and improvement in operating revenues coincided with maintaining strong asset quality standards and comfortable capitalization that confirm the solid financial position along with the continuous expansion of the balance sheet.

He stressed the move forward to build on the tremendous progress made in implementing the digital transformation map during the last period, as the crisis demonstrated the prudence of NBK's proactive policies for digital transformation, and the result of it's superiority by vast differences over the nearest competitors and building enormous capabilities that contributed to meeting the needs of customers despite what it imposed.

The pandemic has limitations and repercussions.

He pointed out that the bank will continue to enhance the levels of capitalization and liquidity and diversify sources of funding, as NBK was able to be the first bank in the Central and Eastern Europe, Middle East and Africa region to succeed in less than 10 months in pricing bonds that fall within the first tranche of capital and other supportive ones compatible with the requirements of The second tranche of capital and finally unsecured bonds with a priority for repayment, "all of which have received great demand from investors of fixed income instruments and financial institutions around the world, which confirms their continued confidence in the leadership of our brand, the solidity of our financial position, the success of our rational policies and our ability to overcome crises."

Key performance indicators and financial results

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• Net operating revenues amounted to 681.1 million dinars ($2.3 billion) in the first nine months of 2021, an increase of 7.7% compared to the same period in 2020.

• Total assets grew by 7.0% on an annual basis by the end of September 2021 to reach 32.5 billion dinars (107.8 billion dollars).

• Total loans and advances recorded a growth of 7.5% on an annual basis to reach 19.0 billion dinars (62.9 billion dollars).

• Customer deposits amounted to 17.4 billion dinars ($57.6 billion), a decrease of 0.8 percent on an annual basis.

• Asset quality standards maintain their strong levels, as the non-performing loans ratio reached 1.43% of the total credit portfolio, while the coverage ratio of non-performing loans reached 230 percent.

• The Group maintains comfortable capitalization levels with a capital adequacy ratio of 18.1 percent, exceeding the minimum required levels.

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