The National Bank of Kuwait (NBK) reported net profits of $541m (KD 163.4 million) for the first half (1H) of 2015. This compares with $479.4m (KD 144.8 million) for the same period in 2014, growing 12.8% year-on-year (YOY).
The NBK Group’s net profits for the first quarter (Q1) of 2015 included the gain from the NBK’s sale of its 30% stake in IBQ, with a net impact of KD 22.5m ($75m). Net profits for Q2 of 2015 reached $221.4m (KD 66.9m), a YOY increase of 9.9%.
Total assets as of the end of June 2015 reached $76bn (KD 23bn), up 14.6% compared to June 2014. The total of the shareholders equity increased by 6.0% to $8.8bn (KD 2.7bn).
Customer loans and advances reached $42.1bn (KD 12.7bn) as of the end of June 2015, growing by 12.9% YOY, while customer deposits grew by 10.1% in the same period to reach $39.8bn (KD 12bn).
The NBK maintained a low NPL/Gross Loans ratio of 1.55% as of the end of June 2015, down from 1.81% a year ago, and NPL coverage ratio increased to 277%, up from 230% a year ago.
NBK Chairman Nasser Al-Sayer said the solid results of H1 of 2015 reflect strong growth in the Group’s core banking businesses. During H1 of 2015, net operating income grew by 12.5% YOY to $1,235.5m (KD 373.1m), confirming NBK’s strong domestic and regional market positions.
The growth in net operating income is mainly attributed to solid growth in the bank’s net interest income, and fees and commissions income with YOY growth rates reaching 12.6% and 8.7%, respectively.
He also highlighted: “The outlook for Kuwait and the GCC remains very positive, despite the sharp drop in oil prices and the turbulence in Europe, mainly due to the huge reserves and solid financial positions of these GCC economies. This allows for continuation of capital expenditure plans and spending on the development projects that Kuwait and the GCC have embarked upon.”
