KUWAIT — National Bank of Kuwait (NBK) reported net profits of KD163.4 million ($541 million) for the first half of 2015 compared with KD144.8 million ($479.4 million) for the same period in 2014, growing 12.8% year-on-year. A bank statement said that NBK Group 1Q 2015 net profits included the gain from the sale of NBK's 30% stake in IBQ with a net impact of KD22.5 million ($75 million). Net profits for the 2Q 2015 reached KD66.9 million ($221.4 million), a year-on-year increase of 9.9%. Total assets as of end-June 2015 reached KD23 billion ($76 billion) up 14.6% compared to June 2014, while total shareholders equity increased by 6% to KD2.7 billion ($8.8 billion), it added. Customer loans and advances reached KD12.7 billion ($42.1 billion) as of end-June 2015, growing by 12.9% year-on-year, while customer deposits grew by 10.1% in the same period to reach KD12 billion ($39.8 billion), it said. NBK maintained a low NPL/gross loans ratio of 1.55% as of end-June 2015 down from 1.81% a year ago, and NPL coverage ratio increased to 277%, up from 230% a year ago. Nasser Al-Sayer, NBK's Chairman, said “NBK continued to deliver solid growth and healthy performance with net profits growing at 12.8% year-on-year during the 1H 2015. This reflects NBK's strong financial position, conservative management practices and the bank's successful strategy”. Al-Sayer added that the solid results of the 1H 2015 reflect strong growth in the Group's core banking businesses. During the 1H 2015, net operating income grew by 12.5% year-on-year to KD373.1 million ($1,235.5 million) confirming NBK's strong domestic and regional market positions, he said, adding that the growth in net operating income is mainly attributed to solid growth in the bank's net interest income and fees and commissions income with year-on-year growth rates reaching 12.6% and 8.7%, respectively. “The overall operating environment in Kuwait continues to witness improvements. We see acceleration in the process of tendering, award and execution of the large infrastructure projects, which has reflected positively on NBK's operational income and loan growth. As the leading bank in Kuwait, NBK continues to play a main role in the financing of these mega infrastructure projects.” Al-Sayer added. NBK originally bought into Egypt in 2007 and now has around 30 branches mostly in Cairo and Alexandria, according to its website. “Other than the Gulf, the Egyptian market positive outlook presents growth potential for the group,” Isam Al-Sager, NBK's group chief executive officer, was quoted as saying in the bank's earnings statement. “NBK seeks to strengthen its position in the Egyptian market on the back of positive developments in terms of security level and political environment,” he added. — Kuna
