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Egypt: NBK-Egypt reports EGP 1.28 billion (KD 11.71 million) in net profit in 1Q2024

National Bank of Kuwait - Egypt (NBK-Egypt) has announced net profits of EGP 1.28 billion (KD 11.71 million) for the first quarter of 2024, a significant increase from the EGP 652 million (KD 6.88 million) reported in the first quarter of 2023, showcasing an impressive growth rate of 96.32%.

Net Operating Income stood at EGP 2.75 billion, recording a substantial increase of 48.6% from EGP 1.85 billion recorded in the corresponding period of 2023. In the meantime, Net Interest Income grew by 53.9%, reaching EGP 2.37 billion compared to EGP 1.54 billion in 1Q2023.

On the other hand, Net Operating Income (excluding interests) increased to EGP 382.67 million in 1Q2024, compared to EGP 321.64 million in 1Q2023, up by 18.97%, while Cost to Net Operating Income dropped from 37.51% in 1Q2023 to 26.15% in 1Q2024.

Total assets reached EGP 155.56 billion in 1Q2024, up by 19.10% compared to the year-end balance of EGP 130.61 billion in 2023. Furthermore, the net balance of loans and credit facilities expanded to EGP 86.14 billion in 1Q2024, reflecting a growth rate of 13.25% compared to EGP 70.06 billion recorded at the end of 2023, including a 45.5% increase recorded by the loans and credit facilities in foreign currencies on the back of the appreciation of foreign currencies against the Egyptian pound.

Meanwhile, customer deposits grew by 19.64% to reach EGP 126.73 billion in 1Q2024, compared to EGP 105.93 billion by the end of 2023. This includes a 52.1% rise in the balance of customer deposits in foreign currencies, influenced by the appreciation of the exchange rate and higher return rates on deposits.  The Return on Average Assets (ROAA) rose from 2.5% in 1Q2023 to 3.6% in 1Q2024, while the Return on Average Equity (ROAE) increased from 23.7% in 1Q2023 to 33.6% in 1Q2024.

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 the first quarter of 2024, National Bank of Kuwait - Egypt continued to achieve strong operating performance across its main business sectors, despite the challenging macroeconomic landscape.”

Al-Bahar stated that Egypt remains one of the most prominent strategic markets for the growth of the Group's business, consistently regarded as its second local market. The bank, as the largest Kuwaiti investment on Egyptian soil, has established a significant presence as one of the fastest-growing banks within the Egyptian banking sector. This growth is reflected in the financial indicators and record business results achieved by NBK-Egypt, particularly in recent years.

Al-Bahar emphasized that the continued expansion of the balance sheet and the growth of all financial indicators affirm the success of the bank's business diversification strategy and its accelerated digital transformation efforts. This strategy aims to increase the bank's market share, particularly in retail banking services, in the region's largest market by population.

"We are committed to enhancing the quality of our services, expanding our geographical footprint, and reaching a more diverse customer base. This is made possible by the significant advancements in our digital infrastructure, information technology, and electronic channels. These developments have positioned NBK-Egypt as a strong competitor in the Egyptian banking market, especially amidst the rising demand for banking services and the growing rates of financial inclusion," Al-Bahar added.

Meanwhile, Vice Chairman, CEO, and Managing Director of National Bank of Kuwait-Egypt, Mr. Yasser El-Tayeb, said: “The strength of the bank's business results, which have exceeded all expectations and targets for this period of the year, reflects the resilience and adaptability of our business model. This growth continues despite the exceptional market challenges we face locally, regionally, and globally.”

El-Tayeb emphasized that NBK-Egypt is experiencing balanced growth across all activities and business sectors while maintaining efficiency rates and risk ratios that align with this expansion. This approach ensures business sustainability and customer satisfaction alike, thanks to the bank's prudent policies and its robust business model capable of meeting customer needs and diversifying income sources. This balanced growth is evident in the bank’s diverse credit operations within the corporate sector, which includes large, medium, and small enterprises.

 Additionally, the retail banking sector has seen significant growth, with NBK-Egypt continually strengthening its position through advanced services and products tailored to various customer segments and lifestyles. This comprehensive approach establishes NBK-Egypt as a “one-stop-shop” that meets all financial needs. Furthermore, the bank is committed to its horizontal expansion plan, opening new branches to cover key cities and governorates across Egypt.

"We strive to support the global trend towards sustainable finance and the transition to a green economy," he added. "Our focus is on backing environmentally friendly projects that achieve sustainability and increasingly rely on renewable energy. We are also committed to exploring available solutions to mitigate the negative effects of climate change and reduce carbon emissions. Sustainable finance has become one of the most crucial tools for supporting and maintaining long-term financial stability,” Al-Tayeb added.

“Recognizing the significance of technology and electronic channels in the banking sector and their substantial role in bolstering competitive advantage among banks, we have consistently reinforced our electronic services," El-Tayeb emphasized. "We actively encourage customers to broaden their usage of these services for payments, aligning with the overarching policy of the state and the Central Bank of Egypt. This initiative aims to foster financial inclusion and integrate new customer segments into the official banking system, contributing to the shift towards a less cash-dependent society.”
 

Egypt: NBK-Egypt Reports EGP 7.3 billion (Equivalent to KWD 51.9 million) in Net Profit in FY2024

National Bank of Kuwait - Egypt (NBK-Egypt) reported net profits of EGP 7.3 billion (Equivalent to KWD 51.9 million ) for the financial year  2024 compared to EGP 4.021 billion (Equivalent to KWD 41.4 million) reported in 2023 marking an impressive 81% increase compared to financial year 2023.

Net Operating Income stood at EGP 13.5 billion by the end of FY2024, recording a substantial increase of 57% from EGP 8.7 billion recorded by the end of FY2023. In the meantime, Net Interest Income grew by 66%, reaching EGP 11.6 billion compared to EGP 7 billion in FY2023.

Meanwhile, Net Operating Income (excluding interests) increased to EGP 1.9 billion in FY2024, compared to EGP 1.7 billion in FY2023, up by 17%, while Cost to Net Operating Income dropped from 28% in FY2023 to 21.2% in FY2024.

Total assets reached EGP 196 billion by the end of FY2024, up by 50% compared to EGP 131 billion by the end of FY2023. Furthermore, total loans and credit facilities expanded to EGP 104 billion in FY2024, reflecting a growth rate of 37% compared to EGP 76 billion recorded at the end of FY2023.  Additionally, customer deposits increased to EGP 160 billion by the end of FY2024, up from EGP 106 billion at the end of FY2023, representing a growth rate of 51%.

Furthermore, the Return on Average Assets (ROAA) improved to 4.5% by the end of FY2024, compared to 3.4% by the end of FY2023, while the Return on Average Equity (ROAE) increased to 39.2% in FY2024, up from 30.7% in FY2023.

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: “NBK-Egypt delivered record profits in 2024, underscoring the success of its operational strategy and reaffirming its trajectory toward further strengthening its position in the Egyptian market. As NBK Group’s most significant market outside Kuwait, Egypt holds substantial growth potential, driven by its promising opportunities and positive economic outlook.”

Al-Bahar highlighted that NBK’s operations in Egypt are among the group’s most profitable, delivering the highest returns on equity and assets.

Al-Bahar emphasized that the sustained expansion of the balance sheet and the growth of the bank's financial indicators reaffirm the success of its business diversification strategy and accelerated digital transformation. This approach aims to strengthen market share, particularly in retail banking, within the region’s most populous country and a key hub for investment opportunities.

“We are committed to enhancing service quality, expanding our geographical presence, and reaching a more diverse customer base. This progress is driven by the significant advancements in our digital infrastructure, information technology, and alternative electronic channels, which have positioned the bank as a strong competitor with a distinct presence in the Egyptian banking sector. This comes amid the rising demand for banking services and the increasing momentum of financial inclusion,” Al-Bahar stated.

“Egypt is a key growth market for NBK Group and a long-term strategic investment, where the Group remains committed to reinforcing its presence and strengthening its position,” Al-Bahar confirmed.

Meanwhile, Vice Chairman, CEO, and Managing Director of National Bank of Kuwait-Egypt, Mr. Yasser El-Tayeb, said: “The bank's strong financial performance at the end of 2024 surpassed expectations and targets, despite challenges and exceptional circumstances affecting the business environment both locally and globally. This achievement underscores the bank’s resilience and prudent business model, reinforcing its ability to sustain success and growth.”

Al-Tayeb emphasized that the bank’s growth is balanced across all business activities, ensuring efficiency and a risk profile aligned with sustainable expansion. This success is driven by a prudent strategy that meets the evolving needs of both corporate and individual clients while diversifying income streams.

Al-Tayeb noted that the bank’s income sources stem from credit operations in the corporate sector, alongside a rapidly expanding retail banking segment, which has grown significantly in recent years. The bank’s credit portfolio reflects a diverse client base, encompassing large, medium, and small enterprises, while its retail banking portfolio serves a broad spectrum of customers. This diversity underscores the strength and stability of the bank’s revenue streams. He further emphasized the bank’s commitment to strengthening its position in retail banking by introducing more advanced services and products tailored to meet customers' evolving financial needs and aspirations.

El-Tayeb further emphasized NBK-Egypt’s commitment to supporting the global shift toward sustainable finance and the transition to a green economy. The bank actively backs environmentally friendly projects that promote sustainability and increased reliance on renewable energy while exploring solutions to mitigate climate change and reduce carbon emissions. He highlighted that sustainable finance has become a vital tool for ensuring long-term financial stability and resilience.

He also affirmed the bank’s strong commitment to leveraging technology and digital channels to enhance its competitive edge in the banking sector. Recognizing their pivotal role, NBK-Egypt continues to expand its electronic services and encourage broader customer adoption of digital payments. This aligns with the broader strategy of the Egyptian government and the Central Bank of Egypt to promote financial inclusion, integrate new customer segments into the formal banking system, and drive the transition toward a less cash-dependent economy.

El-Tayeb concluded by highlighting NBK-Egypt’s steadfast commitment to social responsibility, emphasizing that since the Group’s entry into the Egyptian market in 2007, the bank has actively supported the local community. Through partnerships with reputable civil society organizations, NBK-Egypt channels its development efforts toward impactful initiatives, reinforcing its role as a responsible corporate citizen. Social responsibility remains a cornerstone of the bank’s sustainability strategy, contributing to national development across key areas, including:

• Healthcare provision

• Education and employment support

• Environmental conservation

• Social solidarity

• Development of underserved areas

• Economic development