National Bank of Kuwait SAKP (NBK) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached KD 292.4 million, up 6.2% year-over-year, with Q2 net profit at KD 145.8 million, a 3.3% increase year-over-year.

• Strong operating performance driven by higher interest rates, business volume growth, and diversification across segments and geographies.

• Board approved a semi-annual cash dividend of KD 0.010 per share, subject to regulatory approval.

• Project activity in Kuwait rebounded, with KD 7 billion in projects expected for 2024 and Q2 awards surging 444% quarter-over-quarter.

• Interim consolidated financials for the six months ended 30 June 2024 were reviewed by independent auditors, with no material misstatements or regulatory violations identified.

Financial highlights

• Net operating income grew 8.2% year-over-year to KD 612.4 million.

• Net interest income for H1 2024 was KD 482.3 million, up 11.6% year-over-year.

• Operating surplus (profit before provisions and tax) was KD 385.8 million, up 7.4% year-over-year.

• Total assets reached KD 37.7 billion, up 4.4% year-over-year; loans and advances grew 5.4% to KD 22.7 billion.

• Customer deposits rose 8% to KD 21.8 billion, comprising 68% of total funding.

Outlook and guidance

• Loan growth for 2024 expected in the mid-single-digit range.

• Full-year NIM expected to be stable or slightly above 2023’s 2.59%, with H1 2024 NIM at 2.69%.

• Cost-to-income ratio projected to remain in the high-30s for 2024.

• Cost of risk expected between 40 and 50 basis points for the year.

• Cautiously optimistic outlook amid geopolitical and macroeconomic uncertainties.