Kuwait Times, Tuesday, May 30, 2023 | Thul-Qidah 10, 1444
NBK-Egypt reports KD 6.9 million in net profits
Kuwait:
National Bank of Kuwait-Egypt (NBK-Egypt) reported EGP 652.5 million (Equivalent
to KD 6.9 million) in net profits in the three months ended March 31, 2023,
compared to EGP 348.7 million (Equivalent to KD 6.7 million) for the same period
of the year 2022, recording a growth of 87% YoY. In the first quarter of 2023,
NBK-Egypt witnessed significant growth in key financial indicators. Net Interest
Income recorded a remarkable increase of 100%, reaching EGP 1.54 billion
compared to EGP 0.77 billion in the same period of the previous year.
Additionally, Net Operating Income experienced substantial growth of 99%,
amounting to EGP 1.85 billion in 1Q2023 compared to EGP 0.93 billion in 1Q2022.
Moreover, customer deposits saw a positive trend, rising by 4.50% to reach EGP
88.3 billion as of March 31, 2023, compared to EGP 84.5 billion by the end of
2022. NBK Egypt’s total assets reached EGP 109.3 billion by the end of the first
quarter, exhibiting a 4% increase compared to the year-end balance of EGP 105.1
billion in 2022. Furthermore, the net balance of loans and credit facilities
expanded to EGP 58.1 billion by the end of March 2023, reflecting a growth rate
of 6.9% compared to EGP 54.3 billion recorded at the end of 2022.
Commenting on the financial results announced by NBK-Egypt, Shaikha Al-Bahar,
Deputy Group Chief Officer, National Bank of Kuwait, and Chairman of NBK-Egypt,
said: “The significant increase in NBK-Egypt’s profits reported in the first
quarter, coupled with its sustained profitability growth, underscores the
strength of our financial position and the resilience of our business model.
Despite the escalating operational challenges, our flexible approach has enabled
us to generate profits and maintain a solid performance.”
Al-Bahar emphasized that the continued growth of NBK-Egypt’s balance sheet and
the positive progress observed in various financial indicators is a testament to
the success of the bank’s diversification strategy and the acceleration of its
digital transformation. “Our goal is to enhance the bank’s overall market share,
particularly in retail services, within the region’s largest market in terms of
population. With Egypt’s sizable young population, we are focused on catering to
their needs and expanding our reach,” Al-Bahar confirmed.
“Egypt’s operating environment is currently going through an exceptional phase,
comparable to that of other emerging markets that have faced consecutive
economic shocks. However, we maintain an optimistic outlook for gradual
improvement going forward. This optimism is rooted in the reform measures and
exceptional actions implemented by the government and the Central Bank of
Egypt,” Al-Bahar observed.
“We have strategically positioned ourselves to leverage the favorable
opportunities that will arise as the operating environment improves after the
conclusion of these exceptional circumstances. A number of factors including
decreasing inflation rates, stable exchange rates, and growing foreign
investment will contribute to a positive impact on our operations in Egypt,
enabling greater alignment and synergy with the overall operations of our
Group,” Al-Bahar noted.
“The sustained growth and success we have achieved in Egypt through our
long-term investments affirm the Group’s forward-thinking vision in choosing
Egypt as a strategic investment destination. We are committed to further
developing our presence in the country, driven by the rising demand for banking
services and the increasing rates of financial inclusion”, Al-Bahar noted,
adding that the Bank’s focus is on enhancing the quality of its services,
expanding the range of its digital services and advanced payment solutions, and
expanding its SME loans portfolio. Additionally, NBK-Egypt is actively expanding
and diversifying its operations to encompass a broader geographic scope and
cater to a more diverse range of customer segments.
Meanwhile, Vice Chairman, CEO, and Managing Director of National Bank of
Kuwait-Egypt, Yasser El-Tayeb, said: “NBK-Egypt’s exceptional business results
showcase its resilience and growth potential, even in the face of numerous
challenges in both local and global markets.” El-Tayeb emphasized that the
Bank’s growth is consistently balanced across all business activities while
maintaining the highest adequacy rates and lowest risk ratios, positioning
NBK-Egypt for sustained growth. This leadership position results from the
Group’s prudent policies and versatile business model, better positioning
NBK-Egypt to meet the shifting demands of its customers and diversify its
revenue streams.
El-Tayeb added that NBK-Egypt’s revenues are appropriately balanced between
corporate and retail credit segments, which have been consistently growing over
the past few years, with a very diversified credit portfolio including a wide
range of businesses across various sectors ranging from large scale corporations
to SMEs. Meanwhile, the retail banking portfolio is also well diversified.
This solid position reflects the Bank’s strength and the diversity of its
revenue streams. He also highlighted that going forward, NBK-Egypt strives to
further strengthen its position in retail banking through offering innovative
services and products to its retail customers, in addition to ingraining the
comprehensive concept of “inclusive banking” as the bank of choice that fulfills
all their financial needs and requirements, in addition to continuing the
horizontal growth plan by inaugurating new branches covering key locations
throughout the Egyptian market.
Furthermore, El-Tayeb highlighted NBK-Egypt’s commitment to align its strategies
with the global movement towards sustainable finance and the transition to a
green economy. The Bank aims to actively support environmentally friendly
projects that promote sustainability and the utilization of renewable energy
sources. Moreover, recognizing the significance of sustainable finance in
ensuring long-term financial stability, NBK-Egypt is dedicated to exploring
viable solutions that mitigate the adverse impacts of climate change and reduce
carbon emissions.
Underlining the significance of digitalization and the adoption of emerging
technologies, El-Tayeb said: “We strongly acknowledge the pivotal role of
digital solutions and alternative channels in the banking industry, as we
understand their significance in preserving our competitive edge over our
counterparts.” He added that recognizing the importance of digitalization in
strengthening banks’ competitive advantages, NBK-Egypt has consistently pursued
initiatives to bolster electronic services and promote wider adoption of digital
payment transactions.
This aligns with the national policy and the Central Bank of Egypt’s efforts to
foster financial inclusion and integrate new customer segments and merchants
into the formal banking system, facilitating the transition towards a cashless
society. As part of these endeavors, NBK-Egypt recently introduced the “InstaPay
Application,” which offers customers convenient access to all their bank
accounts and facilitates instant money transfers via their mobile phones 24/7.