KUWAIT: National Bank of Kuwait (NBK) has announced its financial results for the three-month period ended March 31, 2025. The Bank reported a net profit of KD 134.1 million ($434.8 million), compared to KD 146.6 million ($475.3 million) for the corresponding period in 2024. Profit before tax for the period reached KD 173.4 million ($562.3 million) compared to KD 172.0 million ($557.7 million) recorded in 2024.

Total assets as of the end of March 2025 grew by 8.7 percent year-on-year to reach KD 41.6 billion ($135.0 billion), whereas customer loans and advances increased by 9.9 percent year-on-year to KD 24.6 billion ($79.8 billion). Customer deposits grew by 5.6 percent, reaching KD 23.5 billion ($76.2 billion) by the end of March 2025. Meanwhile, shareholders’ equity stood at KD 4.0 billion ($13.1billion), reflecting a growth of 6.4 percent year-on-year

Solid results

Commenting on the Bank’s annual financial results, Hamad Al-Bahar, NBK Group Chairman stated, “NBK entered 2025 on a strong note, delivering solid financial results in the first quarter despite a challenging global landscape. The performance came amid persistent geopolitical tensions on both global and regional fronts, rising concerns over a potential global trade war following recent US tariff measures, and increasingly complex macroeconomic conditions across many parts of the world.”

“Once again, NBK reaffirms its resilience and adaptability to evolving economic conditions, underpinned by a well-diversified mix of products, services, and international operations across various parts of the world. This strategic positioning is supported by the Bank’s strong balance sheet, solid capitalization, high liquidity, and high asset quality—all reinforced by a prudent risk management approach,” Al-Bahar added.

He emphasized that NBK is well-positioned to sustain its leadership in the domestic financial sector while delivering long-term value to shareholders, customers, and the communities it serves. He noted that the Bank continues to realize the benefits of its strategic investments in both technology and human capital. “In 2025, NBK is set to accelerate its sustainable financing efforts in pursuit of its target to expand its sustainable assets portfolio to $10 billion by 2030. The Bank will also continue to advance a range of initiatives in support of its broader commitment to achieving carbon neutrality,” Al-Bahar confirmed.

He highlighted that during the first quarter of 2025, NBK played a key role in launching and supporting a wide range of initiatives across various fields, reinforcing its position as the leading contributor to social responsibility in Kuwait. Among these efforts was NBK’s annual Ramadan campaign, “Doing Good Deeds”, which featured a diverse lineup of health, sports, cultural, and recreational activities.

Strong buffers

Meanwhile, Isam J Al-Sager, NBK Group Vice Chairman and CEO, said: “NBK’s first-quarter financial results this year underscore the strength of its buffers, which have enabled it to withstand global economic headwinds and their ripple effects across regional and local markets.”

Al-Sager noted that NBK’s diversified business mix, strategically planned investments, and prudent risk management enabled the Bank to maintain operational flexibility across its various business segments during the first three months of 2025. This was led by the core banking business, which played a key role in mitigating the impact of an increasingly challenging economic conditions during that period.

He stated that NBK’s net profit for the first quarter of 2025 was impacted by the effective implementation of the Domestic Minimum Top-Up Tax (DMTT) on multinational enterprises (MNEs) operating in the country. This led to net profit recording a year-on-year drop of 8.5 percent while profit before tax was flat year-on-year. Al-Sager revealed that NBK Group recorded a net operating income of KD 310.7 million ($1.0 billion) in the first quarter of 2025, reporting a growth of 0.6 percent year-on-year. He also noted that both the International Banking and Boubyan Bank, its Islamic banking arm, remain key revenue and profit growth contributors to the Group.

Seizing opportunities

Al-Sager emphasized that NBK remains committed to investing in technology and fostering innovation to build an inclusive and sustainable financial future. He added that the Bank aims to expand its customer base while capitalizing on opportunities in promising markets and key sectors.

He further noted that during the first quarter of 2025, NBK continued to deliver innovative solutions and services tailored to the evolving needs of its customers, showcasing its agility in keeping pace with rapid market developments. The Bank also entered into strategic partnerships with leading local and international institutions across key sectors, reinforcing its commitment to offering customers an exceptional and comprehensive banking experience.

On the wealth management front, Al-Sager stated that NBK Wealth has continued to enhance its offerings by delivering a broad range of integrated solutions across private banking, asset management, financial planning, and advisory services. Supported by a wide global network of operations, these efforts have further solidified its position as the largest wealth management entity in Kuwait and among the leading players in the region.

Al-Sager emphasized the Bank’s commitment to actively contributing to Kuwait’s economic growth and development through financing strategic infrastructure projects, ongoing support for entrepreneurs, and efforts to promote financial inclusion. He also highlighted NBK’s focus on maintaining its competitive edge in the local market while continuing to grow its presence in international markets.

Furthermore, he emphasized the Bank’s commitment to enhancing operational efficiency across all business sectors, while reinforcing its role in supporting sustainability efforts within the communities it serves. He also highlighted NBK’s dedication to being a strategic partner for customers in their pursuit of sustainable financing solutions.

Operational environment

Regarding his outlook for the business environment in Kuwait, Al-Sager noted, “Several indicators suggest a positive shift in the operational landscape for Kuwait in 2025. At the forefront is the continued momentum in awarding and implementing projects. This positive trend is expected to persist as the government focuses its economic agenda on prioritizing major development projects and accelerating their implementation in alignment with Vision 2035.”

Al-Sager emphasized the government’s commitment to advancing financial and economic reforms, highlighted by the recent adoption of key legislation such as the Financing and Liquidity Law (debt law) and the anticipated issuance of the mortgage law. These initiatives are expected to support economic growth and positively impact the business environment in Kuwait. However, he noted that the challenges posed by US tariffs, concerns over a potential global trade war, and ongoing geopolitical tensions will remain among the most significant uncertainties that are facing the markets in the near term.

The strongest & most valuable brand

NBK reaffirmed the strength of its brand in 2025, maintaining its position as the most valuable and strongest banking brand in Kuwait. According to the annual report issued by Brand Finance, NBK widened its lead over competitors in the Kuwaiti banking sector, achieving a 22 percent increase in brand value compared to 2024. Moreover, Global Finance recently named NBK the Best Bank in Kuwait - 2025, further solidifying its leadership in the Kuwaiti banking sector.

Key financial indicators for 1Q2025

•Net operating income stood at KD 310.7 million ($1.0 billion), up 0.6 percent year-on-year

•Total assets grew by 8.7 percent year-on-year, at KD 41.6 billion ($135.0 billion)

•Customer loans and advances increased by 9.9 percent year-on-year to KD 24.6 billion ($79.8 billion)

•Customer deposits grew by 5.6 percent year-on-year to KD 23.5 billion ($76.2 billion)

•Shareholders’ equity amounted to KD 4.0 billion ($13.1 billion), registering an annual growth of 6.4 percent

•Strong asset quality metrics, with NPL/gross loans ratio at 1.38 percent and an NPL coverage ratio of 251 percent

•Robust Capital Adequacy Ratio of 16.6 percent, comfortably exceeding regulatory requirements