National Bank of Kuwait SAKP (NBK) Q4 2024 earnings summary

Executive summary

• Achieved net profit of KD 638.6 million in 2024, up from KD 588.4 million in 2023.

• Net operating income rose 7.2% to KD 1,251m in 2024, compared to KD 1,167m in 2023.

• Return on average equity increased to 15.1% in 2024 from 15.0% in 2023; return on average assets rose to 1.55% from 1.53%.

• Consolidated financial statements for 2024 were audited and present a true and fair view in accordance with IFRS as adopted by the Central Bank of Kuwait.

• No material misstatements or regulatory violations were found during the audit.

Financial highlights

• Net interest income and net income from Islamic financing rose to KD 980.1 million from KD 905.1 million year-over-year.

• Non-interest income increased 4% to KD 271m.

• Operating expenses rose 10% to KD 468m.

• Basic earnings per share increased to 69 fils from 65 fils.

• Total assets increased to KD 40.3 billion from KD 37.7 billion at year-end 2023.

Outlook and guidance

• 2025 guidance projects mid-single digit loan growth and contracting net interest margin.

• Cost to income ratio expected in the high 30s; cost of risk around 40 bps.

• Capital adequacy ratio to remain strong at 17.3%.

• The Group expects a significant increase in effective tax rate in 2025 due to the implementation of Pillar 2 global minimum tax.

• The impact of new tax regulations is being assessed, with the full effect not yet estimable.