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Egypt: NBK - Egypt achieves a net profit of EGP 1.16 billion by the end of the third quarter of 2017

National Bank of Kuwait - Egypt, a subsidiary of the National Bank of Kuwait Group, reported a net profit of EGP 1.16 billion as of the end of the third quarter of 2017, compared to EGP 659.7 million for the same period last year, with a growth of 75.84%.

The total assets grew by 37.95% reaching 55.72 billion Egyptian Pounds as of the end of September 2017, compared to 40.39 billion Egyptian Pounds for the same period last year. Moreover, the total customer deposits during this period increased by 27.84% reaching EGP 40.4 billion compared to 31.6 billion Pounds for the same period last year, while net customer loans and facilities rose as of the end of September 2017 by 47.62% to reach EGP 24.8 billion compared to EGP 16.8 billion for the same period last year.

The Group Chief Executive Officer at National Bank of Kuwait SAK and Chairman of the National Bank of Kuwait – Egypt, Mr. Isam Jassim Al-Sager, stated that the strong growth achieved by the bank in Egypt reaffirms its success in enhancing its position in the Egyptian market, which represents one of the main growing markets of NBK Group, given the promising growth opportunities and positive prospects of this market.

He pointed out that the strength of the profits of National Bank - Egypt stems from the fact that they are operational profits resulting from the improvement of the business environment, which reflects the stability of the economic situation in Egypt. He indicated that this stability will create for the bank new opportunities (investment and financing), which will contribute to improving the level of product integration between the bank and the group, thus strengthening its position in the Egyptian market.

Al-Sager affirmed that NBK Group investments in Egypt are strategic long-term investments. NBK - Egypt is deemed one of its most important affiliated foreign branches due to its great economic weight in the region. He clarified that its importance to the group is increasing over time. This is reflected in the continued growth of its profits, which increases its contribution to the Group's total profit.

He added that they aim to strengthen their position in Egypt, as well as to increase growth rates in the coming period in a way that reflects their optimistic vision of the Egyptian economy, noting that it is a market with multiple components and solid foundations. He emphasized that NBK – Egypt is always striving to provide the best banking services to its customers, in line with NBK’s leading regional and global niche.

For his part, the Managing Director of National Bank of Kuwait – Egypt, Dr. Yasser Hassan, stated that the bank continues its strong performance by achieving high growth rates in all its financial indicators despite the challenges experienced by financial markets locally and globally and the changes in the economic arena in Egypt as a result of floating the Pound exchange rate at the end of last year, thanks to the prudent policy pursued by the bank as a member of NBK Group.

He added that the Bank's policy is to maintain the diversification and balance of sources of income and loan portfolio on the one hand, and, on the other hand, to provide more flexible financing solutions in addition to offering innovative banking products that meet the actual needs of customers and are based on an accurate and thorough study of the market; this in addition to the bank’s robust financial position, budgetary strength and successful strategy

He added that most of NBK-Egypt profits stem from credit operations with the corporate sector, where the bank's credit portfolio includes a wide variety of companies that deal with it, thus reflecting the diversification of the Egyptian economy. He pointed out that the bank seeks to strengthen its position in the retail sector of individuals during the coming period.

He clarified that the bank launched in November 2014 an ambitious strategy to implement development and restructuring that included attracting new competencies. The quality of offered products has also been improved and the investment and administrative structure of the bank has been fully restructured.

He indicated that the bank now has 43 branches spread throughout the Egyptian governorates and that it seeks to increase their number to 60 branches over the next three years.

It is noteworthy to mention that NBK – Egypt is a member of the National Bank of Kuwait Group. It was established in Egypt in 1980 under the name of the National Bank of Egypt. It has a network of banking branches spread in the most vital locations in the various governorates and cities of Egypt, including: Cairo, Giza, Alexandria, Delta, Sinai, the Red Sea and Upper Egypt, as well as industrial areas such as: the cities of the Sixth of October and the tenth of Ramadan. It is also one of the few banks in the Egyptian market that have an Islamic license in addition to the conventional license. It has two Islamic branches, which allow the bank to offer Sharia compliant products as well as conventional products.

It is worth mentioning that the National Bank of Kuwait, established in 1952 as the oldest national bank and financial institution in the State of Kuwait and the Arabian Gulf region, is one of the largest and most prominent Arab banks and it has the highest credit rating in the Middle East. The global agencies Moody's, Standard & Poor's, and Fitch unanimously confirm the robustness of its financial indicators, the quality of its high assets, its strong capitalization, the experience of its management, the clarity of its strategic vision and the availability of a stable funding base. The National Bank of Kuwait also maintains its position among the top 50 safest banks in the world for the twelfth consecutive year. NBK Group today has the largest network of local and international branches, reaching 153 branches and subsidiaries covering four continents around the world and spread across the United States, Europe, the Gulf States, the Middle East, China and Singapore.

Egypt: NBK-Egypt reports EGP 4.021 billion (Equivalent to KWD 41.4 million) in net profit in FY2023

National Bank of Kuwait - Egypt (NBK-Egypt) has announced net profits of EGP 4.021 billion (Equivalent to KWD 41.4 million) for the financial year 2023, a significant increase from the EGP 1.826 billion (Equivalent to KWD 30.7 million) reported in 2022, showcasing an impressive annual growth rate of 120.21%.

Net Operating Income stood at EGP 8.66 billion, recording a substantial increase of 87.04% from the EGP 4.63 billion recorded in 2022. In the meantime, Net Interest Income jumped by 82.51%, reaching EGP 6.99 billion compared to EGP 3.83 billion in 2022.

On the other hand, Net Operating Income (excluding interests) increased to EGP 1.67 billion in 2023, compared to EGP 0.8 billion in 2022, up by 108.75%, while Cost to Net Operating Income dropped from 37.14% in 2022 to 28.02% in 2023.

Total assets reached EGP 130.61 billion in 2023, up by 24.22% compared to the year-end balance of EGP 105.14 billion in 2022. Furthermore, the net balance of loans and credit facilities expanded to EGP 76.06 billion 2023, reflecting a growth rate of 38.42% compared to EGP 54.95 billion recorded at the end of 2022. Moreover, customer deposits continued to grow, rising by 25.42% to reach EGP 105.93 billion in 2023, compared to EGP 84.46 billion by the end of 2022.

The Return on Average Assets (ROAA) surged from 2% at the end of 2022 to 3.4% at the end of 2023, while the Return on Average Equity (ROAE) increased from 16.9% at the end of 2022 to 30.7% by the end of 2023.

Commenting on the financial results announced by NBK-Egypt, Ms. Shaikha Al-Bahar, Deputy Group Chief Executive Officer, National Bank of Kuwait, and Chairman of NBK-Egypt, said: “In 2023, NBK- Egypt achieved its highest annual profits to date, accompanied by record growth rates. This success is credited to a strong operational performance, highlighting the resilience of our financial position and the flexibility of our business model, which allows for profit generation despite operational challenges.

“At NBK - Egypt, our objective is to enhance banking transactions and elevate their quality to meet growing market demand. We pursue this goal by focusing on the advancement of our digital services, leveraging the expertise and excellence of the Group in this domain. Additionally, we aim to expand our loan portfolio for SMEs, broaden the scope of our operations, and diversify them to encompass a wider geographical reach and cater to various customer segments,” Al-Bahar added.

Al-Bahar emphasized that Egypt stands as one of the key strategic markets for fostering the Group's business growth, consistently regarded as the second domestic market. Being the largest Kuwaiti investment in Egypt, the bank holds a significant presence in the Egyptian banking sector, evident in its rapid growth trajectory and strong financial performance. The Bank's positive momentum underscores its commitment to expanding further and strengthening its market position.

Al-Bahar also highlighted that the Group perceives the Egyptian market as a strategic long-term investment. Given that the Egyptian economy ranks among the largest in the region, it holds substantial growth potential once it regains momentum.

She further emphasized that Egypt represents a significant growth market, and that the Bank is committed to its continuous expansion. The operations in Egypt continue to be among the most profitable within the Group, boasting the highest rates of return on shareholders' equity and assets.

“As geopolitical tensions in the region subside, economic recovery efforts will receive a significant boost. By restoring confidence in the economy and currency, substantial opportunities will emerge. We maintain an optimistic outlook on future prospects, buoyed by the momentum generated from the Egyptian government and the Central Bank of Egypt's reform and exceptional measures,” Al-Bahar confirmed.

Meanwhile, Vice Chairman, CEO, and Managing Director of National Bank of Kuwait-Egypt, Mr. Yasser El-Tayeb, said: “The robust financial results and key indicators serve as the most compelling evidence, showcasing the Bank's capacity to maintain growth and attain favorable business outcomes throughout 2023, notwithstanding the unprecedented challenges faced both locally and globally. These challenges include the aftermath of the Russian-Ukrainian conflict, the Gaza war, import crises, and fluctuations in the foreign exchange rate against the Egyptian pound”.

El-Tayeb emphasized that NBK-Egypt maintains a well-balanced distribution of revenues across diverse business activities. This strategic approach is coupled with efficient operational rates and risk ratios, aligning with the dual objectives of achieving growth and ensuring business sustainability. Credit for this success is attributed to the Bank's prudent policies and a sound business model, demonstrating its capability to meet customer needs.

El-Tayeb further explained that the majority of NBK's income sources in Egypt are derived from credit operations in both the corporate sector and the rapidly expanding retail banking sector. The latter has notably increased in prominence, particularly in recent years, with a very diversified credit portfolio including a wide range of businesses across various sectors ranging from large scale corporations to SMEs. Meanwhile, the retail banking portfolio is also well diversified. This solid position reflects the Bank’s strength and the diversity of its revenue streams. He also highlighted that going forward, NBK-Egypt strives to further strengthen its position in retail banking by offering innovative services and products to its retail customers, in addition to continuing the horizontal growth plan by inaugurating new branches covering key locations throughout the Egyptian market.

Al-Tayeb also emphasized the Bank's firm belief in the pivotal role of technological advancements and electronic channels within the banking sector. Recognizing their significance in bolstering competitive advantages among banks, we, at NBK-Egypt have prioritized a robust expansion of our electronic banking services, making substantial investments in this area. Our ultimate goal is to provide customers with an exceptional banking experience, offering a unique facility that enables them to conduct the majority of their banking transactions conveniently, anywhere, anytime. Furthermore, we aim to encourage customers to utilize electronic means and channels for payments, aligning with the broader policy objectives of the state and the Central Bank of Egypt in this regard.

Furthermore, El-Tayeb highlighted NBK-Egypt's commitment to align its strategies with the global movement towards sustainable finance and the transition to a green economy. The Bank aims to actively support environmentally friendly projects that promote sustainability and the utilization of renewable energy sources to mitigate climate change, since sustainable financing has emerged as a fundamental mechanism and instrument for facilitating and maintaining enduring financial stability.

In terms of the bank's social responsibility, Al-Tayeb highlighted that since NBK Group entered the Egyptian market in 2007, NBK-Egypt has remained dedicated to serving the Egyptian community. This commitment is demonstrated through the support, donations, and contributions extended to numerous charitable organizations. Additionally, the Bank actively collaborates with reputable civil society institutions, establishing partnerships aimed at becoming the operational arm of the Bank's development initiatives.