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NBK reports net profits of $321.5 million for 1Q 2015.

National Bank of Kuwait (NBK) reported net profits of $321.5 million (KWD 96.5 million) for the first quarter of 2015 compared with $279.6 million (KWD 83.9 million) for the same period in 2014, growing 15 per cent year-on-year.

The Group's 1Q 2015 net profits included a post-tax impact of KWD 22.5 million ($75 million) from the sale of NBK's 30 per cent stake in IBQ. Additionally, NBK increased its provision charges in 1Q 2015 compared to the same period last year on the group level which also included judgmental provisions.

Total assets as of end of March 2015 reached $77.7 billion (KWD 23.3 billion) up 13.8 per cent compared to March 2014, while total shareholders' equity increased by 5.3 per cent to $8.7 billion (KWD 2.6 billion). Customer loans and advances reached $41.2 billion (KWD 12.4 billion) as of end of March 2015, growing at 12.9 per cent year-on-year, while customer deposits grew by 5.1 per cent for the same period to reach $38.9 billion (KWD 11.7 billion).

NBK asset quality remained exceptionally strong with NPLs/Gross loans improving to 1.47 per cent as of end of March 2015 from 1.93 per cent a year ago, and NPL coverage increasing to 281 per cent from 203 per cent a year ago.

Nasser Al-Sayer, NBK Chairman, said "NBK continued delivering solid growth and performance. This reflects NBK's strong financial position, conservative management and the bank's successful strategy".

Al-Sayer affirmed that the solid results of 1Q 2015 are driven by the strong growth of the core banking activities. During 1Q 2015, net operating income grew at 22.8 per cent year-on-year to $648 million (KWD 194.5 million) confirming NBK's strong domestic and regional market position.

"There is a noticeable improvement in the process of tendering, award and execution of the large infrastructure projects, which has reflected positively on NBK's operational income and loan portfolio. NBK continues to play an important role in the financing of mega projects."

"The economic outlook for Kuwait and the GCC remains positive despite the sharp drop in oil prices due to the huge reserves and solid financial positions. This supports the capital expenditure plans and the continuity of development projects that Kuwait and the GCC have embarked upon." Al-Sayer added.

Isam Al-Sager, NBK's Group Chief Executive Officer reaffirmed NBK's strategic direction as a leading bank in Kuwait and the region with the aim of further diversifying its income sources. "In Kuwait, the bank continued to strengthen its market position, while the acquisition of 58.4 per cent stake in Boubyan Bank in 2012, remains a differentiator to NBK's operations in Kuwait as Boubyan continues to offer strong growth outlook for the Group."

"Regionally, NBK is in a strong position to benefit from growth opportunities in regional markets especially the GCC. The reputation and experience in leading the financing of mega deals made NBK the bank of choice for regional and international companies operating in the region in parallel to the Bank's presence across continents in more than 15 markets." Al-Sager highlighted.

"The Egyptian market's positive outlook represents a significant growth potential for the Group. NBK seeks to strengthen its position in the Egyptian market on the back of positive developments in terms of security level and political environment", Al-Sager added.

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Publication:CPI Financial
Article Type:Financial report
Geographic Code:7KUWA
Date:Apr 14, 2015
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