The National Bank of Kuwait, the country's biggest lender, has reported a 16 per cent jump in its second-quarter profit on the back of higher interest income and non-interest income.
Net profit attributable to shareholders for the three months to the end of June rose to more than 141 million Kuwaiti dinars ($461 million), from 121 million dinars in the same period last year, the lender said in a filing to Boursa Kuwait, where its shares are traded.
The results beat the 137 million-dinar estimate by investment bank EFG Hermes.
Net interest income during the three-month period surged 31 per cent to about 176 million dinars while non-interest income rose about 9 per cent to nearly 68 million dinars.
Operating expenses and provisions for credit losses and impairment losses also jumped during the period.
“In the face of a challenging global economic landscape, we demonstrated our resilience and strength through our growth strategy, prudent risk and capital management and diverse business portfolio,” NBK Group chairman Hamad Al-Bahar said.
The bank's first-half profit climbed about 16 per cent to 275.3 million dinars, from Dh237.8 million dinars during the same period last year, as net interest income and non-interest income rose during the period.
Total assets in the first half increased by 5.3 per cent annually to 36.1 billion dinars while total loans and advances were up 7.1 per cent at 21.6 billion dinars.
Customer deposits rose by 7.1 per cent annually to Dh20.3 billion dinars.
“In the first half of 2023, we demonstrated our commitment to our shareholder-focused strategy by successfully achieving strong profits and maximising returns,” said vice chairman and chief executive Isam Al-Sager.
“The significance of strong business growth, robust liquidity and prudent levels of asset quality will continue to drive profit growth throughout 2023.”
The bank said NBK’s board will distribute a semi-annual cash dividend per share for the first half of 2023 of 10 fils, or 10 per cent of the nominal value per share.
Economies in the GCC are set to maintain their growth momentum this year, although at a slower pace, as a robust expansion in non-oil sectors offsets lower oil income for the six-member bloc amid production cuts.
The region is forecast to grow by 2.5 per cent in 2023, following a 7.3 per cent expansion last year, before picking up to 3.2 per cent in 2024, according to the World Bank.
