KUWAIT: National Bank of Kuwait ("NBK", the "Bank" or the "Group") has announced its financial results for the three-month period ended 31 March 2022. The Bank reported a net profit of KD 116.6 million ($383.6 million), compared to KD 84.3 million ($277.4 million) for 1Q 2021, improving by 38.3 percent year-on-year. Total assets as of end of March 2022 grew by 8.7 percent year-on-year to reach KD 33.7 billion ($110.9 billion), whereas total loans and advances increased by 12.3 percent year-on-year to KD 20.1 billion ($66.0 billion), and total shareholders' equity reached KD 3.4 billion ($11.2 billion), growing by 3.5 percent year-on-year.
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Commenting on the Bank's quarterly financial results, Isam Jasem A Al-Sager, Vice-Chairman and Group Chief Executive Officer, said: "During the first quarter of 2022, we recorded strong interim profits and continued to build on the operational momentum that we achieved over the past year, delivering another quarter of strong earnings amid continued growth across all of our business lines."
He added that the operating environment in Kuwait continued to witness signs of recovery during the first quarter of 2022; thanks to the improvement in the pace of consumer spending and the steady increase in oil production that coincided with the noticeable rise in its prices. The hike in oil prices strengthened the fiscal position of the Government which reflected positively on business sentiment and activity. We are expecting an acceleration in the pace of project activities during the year, given the government's commitment to implementing its strategic objectives and increasing the spend on infrastructure development.
"Our performance is supported by prudent risk management and excellent credit quality; and our investments in talent and technology supports stronger revenue growth, improved efficiency of our operations and maximized returns for our shareholders," Al-Sager explained.
"The robust volume growth that the Bank achieved has further supported our strong performance delivered in our operating income; reaching KD 236.5 million and growing by 6.8 percent year-on-year. Furthermore, the significant growth in bottom line stems from the improvement in the cost of risk levels; thanks to proactive provisioning policy adopted by the Bank over the past two years," Al-Sager stressed.
In addition, Al-Sager mentioned that the Bank recorded healthy performance across strategic growth areas including Islamic banking and global wealth management. Moreover, the continuous improvement in the operating environment is expected to reflect positively on corporate credit growth. Moreover, fees and commission income growth benefited from the market activity as well as the strong relationships that the Bank established with its customers over the years.
Al-Sager also stated that the Bank continued to make good progress in advancing its strategic agenda towards digital transformation as well as executing its technological initiatives, including the launch of "Weyay Bank", with its integrated package of advanced products and services to meet the demands of the Kuwaiti youth.
Al-Sager pointed out that NBK strives to embed ESG practices into its decision making process while developing approaches to assess climate change risk and integrating sustainability into NBK's business plans. During the first quarter of 2022, and as the Bank continues to build a market leading position in sustainable development, NBK launched its Sustainable Financing Framework.
The framework aims to integrate environmental, social and governance practices into all our operations and support the transition to a more sustainable and low carbon economy; while enabling and promoting responsible business practices supporting Kuwait's sustainable growth enshrined in New Kuwait Vision 2035.
Al-Sager stressed that in 2022, the Bank will continue to invest heavily in its employees, and focus on its approach to provide the best products and services that are tailored and in line with the ever-changing customers' needs, while accelerating its commitments aimed at achieving strategic growth towards a sustainable future.