National Bank of Kuwait reports $1.7bn in net profit for 2022

National Bank of Kuwait (NBK) recorded a net profit of KD509.1m ($1.7bn) for the year 2022.

Net profit grew 40.5 per cent year-on-year from KD362.2m ($1.2bn) recorded in the corresponding period of 2021.

NBK recorded a net profit of KD 509.1 million (USD 1.7 billion) for FY 2022, up 40.5% year-on-year.#NBKProfits pic.twitter.com/vrbP4aRnmd

— National Bank of Kuwait (@NBKPage) January 29, 2023

The lender’s net operating income grew 12.2 per cent from 2021 to reach KD1bn ($3.3bn).

As of the end of December 2022, total assets grew by 9.3 per cent year-on-year to reach KD36.3bn ($118.6bn), whereas customer deposits surged 10.4 per cent to reach KD20.2bn ($65.9bn).

Meanwhile, total loans and advances stood at KD21bn ($68.6bn), up by 6.5 per cent year-on-year, while shareholders’ equity reached KD3.4bn ($11.2bn), growing by 3.3 per cent year-on-year.

The board of directors proposed a cash dividend of 25 fils per share for the second half of 2022, bringing the total cash dividends for the year to 35 fils.

The board also proposed the distribution of 5 per cent bonus shares (5 shares for every 100 shares owned). However, the proposed cash dividend distribution and bonus shares are subject to approval by the Annual General Assembly, scheduled during March 2023, the lender said.

Earnings per share (EPS) stood at 65 fils per share at the end of the year, compared to 45 fils at the end of 2021.

“We are proud to have achieved the highest annual profits in the bank’s history; driven by solid operational performance across all business segments, reflecting the soundness of our prudent strategy and solid financial position,” said Hamad Al-Bahar, group chairman.

“Over the course of the year, new challenges emerged, including geopolitical tensions in Europe, as well as tightened monetary policies pursued by most central banks around the world in a bid to curb high inflation. Nonetheless, NBK rose above those challenges.”

Total cash dividends distributed over the past ten years reached KD1.8bn in addition to KD3.2bn worth of bonus shares (based on NBK closing share price as of December 31, 2022), Al-Bahar explained.

NBK announced its commitment to become carbon neutral by 2060 this year to support Kuwait’s strategic initiative to drive environmental and socio-economic prosperity. The lender said that it has set its interim goals to reduce its gross operational emissions by 25 per cent by 2025.