Kuwait Times, Thu, Feb 29, 2024 | Shaban 19, 1445
NBK-Egypt reports EGP 4.021bn (KD 41.4m) in net profit in FY 2023
Kuwait:
National Bank of Kuwait -
Egypt (NBK-Egypt) has announced net profits of EGP 4.021 billion (Equivalent to
KD 41.4 million) for the financial year 2023, a significant increase from the
EGP 1.826 billion (equivalent to KD 30.7 million) reported in 2022, showcasing
an impressive annual growth rate of 120.21 percent.
Net operating income stood at EGP 8.66 billion, recording a substantial increase
of 87.04 percent from the EGP 4.63 billion recorded in 2022. In the meantime,
net interest income jumped by 82.51 percent, 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 percent,
while cost to net operating income dropped from 37.14 percent in 2022 to 28.02
percent in 2023.
Total assets reached EGP 130.61 billion in 2023, up by 24.22 percent 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 percent compared to EGP 54.95 billion recorded at the end
of 2022. Moreover, customer deposits continued to grow, rising by 25.42 percent
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 percent at the end of 2022 to
3.4 percent at the end of 2023, while the return on average equity (ROAE)
increased from 16.9 percent at the end of 2022 to 30.7 percent by the end of
2023.
Commenting on the financial results announced by NBK-Egypt, 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, 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.
El-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 an instrument for facilitating and maintaining
enduring financial stability.
In terms of the bank’s social responsibility, El-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.
Yasser El-Tayeb
Once again, NBK-Egypt maintains its robust performance, achieving remarkable
growth rates across all financial indicators.
We are committed to strengthening our presence, not only in the corporate sector
but also in the retail banking segment.
NBK-Egypt is actively advancing its electronic services and embracing digital
transformation initiatives.
We are dynamically promoting the global shift towards sustainable financing and
the transition to a green economy, supporting environmentally friendly projects.
Our focus on social responsibility remains steadfast, and we continue to expand
our efforts in this area year after year.