National Bank of Kuwait SAKP (NBK) investor relations material

Executive summary

• Net profit for 1H 2026 reached KD 347.4 million, up from KD 337.4 million year-over-year, with operating income and surplus both increasing and Q2 profit exceeding Q2 2025 by 4.5%.

• Operating income grew 4.8% year-over-year to KD 662 million, driven by higher net interest and non-interest income, and stable asset quality.

• The group demonstrated resilience amid heightened regional geopolitical tensions and macroeconomic uncertainty, maintaining strong operational performance, robust balance sheet, and strong liquidity and capital positions.

• Diversification through international and Islamic banking contributed significantly to group profit, with international banking at 22% and Islamic at 16%.

• Strategic focus remains on digital transformation, innovation, and ESG initiatives, with 60% of the 2030 sustainable finance target achieved and operational emissions reduced by 37.35% by end-2025.

Financial highlights

• Net profit for 1H 2026: KD 347.4 million (+3% YoY); net operating income: KD 662 million (+4.8% YoY).

• Net interest income increased 2% YoY to KD 501 million; non-interest income rose 14% YoY to KD 161.5 million, with fee and FX gains.

• Operating expenses increased 5.3% YoY to KD 252.9 million, reflecting investments in staff and digital initiatives.

• Cost-to-income ratio stable at 38.2%.

• Total assets reached KD 46.2 billion (+6% YoY); loans and advances at KD 27.8 billion (+8.9% YoY); customer deposits grew 13% YoY to KD 27 billion.

Outlook and guidance

• Loan growth for 2026 expected in the mid to high single-digit range, supported by a strong pipeline across regions.

• NIM for 2026 anticipated to remain under pressure, averaging near 2.28–2.29%.

• Annual cost growth projected in the mid to high single-digit range; cost-to-income ratio expected below 40%.

• Cost of risk for 2026 to be materially lower than normalized 40 bps due to recoveries; specific guidance withheld due to uncertainty.

• Capital adequacy ratios expected to remain above regulatory minimums, with regulatory measures temporarily easing requirements.