Al-Saqer: "Al-Watani" enjoys liquidity and funding levels exceeding regulatory requirements
Isam Al-Saqer, Vice Chairman and Chief Executive Officer of National Bank of Kuwait (NBK) Group, stated that the financial indicators for the first half of 2026 reflect the strength of the Group’s operational performance, benefiting from the flexibility of its business model, diversified revenue streams, and wide geographical presence. These factors have enhanced its ability to sustain growth and maintain robust performance despite economic challenges and geopolitical developments in the region.
In an interview with Al Arabiya, Al-Saqer noted that NBK achieved net profits of 324.8 million Kuwaiti dinars in the first half of 2026, representing a 3% increase compared to the same period in 2025. Net operating revenues rose to 662.0 million dinars, a year-on-year increase of 4.8%.
He added that the bank continued to deliver strong profitability metrics, with the return on average shareholders’ equity reaching 14.4% and the return on average assets standing at 1.42%. Total loans and advances grew by 8.9% year-on-year to 27.8 billion dinars, while customer deposits increased by 13.1% to 27.0 billion dinars compared to the same period last year.
Al-Saqer emphasized that these results demonstrate the resilience of the Group’s diversified business model, both in terms of activities and markets, which has strengthened business continuity and mitigated the impact of various economic variables. He explained that this model has enabled the Group to maintain strong performance and achieve balanced growth in revenues and profits, supported by a diversified customer base.
He highlighted that continued growth in business volume, particularly in the loan and investment portfolios, was a key driver of performance during the period. Net interest and Islamic financing revenues rose by 2.2% year-on-year to 500.5 million Kuwaiti dinars in the first half of 2026, while non-interest income recorded strong growth of 13.9%, reaching 161.5 million dinars.
Al-Saqer stated that the strategy to diversify revenue sources continued to yield positive results. International operations and Islamic banking services through Boubyan Bank—the Islamic banking arm of the NBK Group—played a pivotal role in supporting the Group’s profitability and enhancing its operational resilience. Together, these segments contributed 38% of the Group’s total profits in the first half of the year, reflecting NBK’s success in building a diversified business model capable of achieving growth and maintaining performance stability under various economic conditions.
Regarding geopolitical developments in the region, Al-Saqer clarified that after a period of relative de-escalation, the region is witnessing renewed tensions, leading to increased uncertainty both regionally and globally. He noted that the full implications of these developments remain unclear, but the persistence of uncertainty poses a pressure on economic growth in Gulf Cooperation Council (GCC) countries and could widen fiscal deficits.
For Kuwait, he explained that the previous reduction in tensions had supported economic activity, while the current escalation may lead to a temporary slowdown in the recovery pace. However, he affirmed that recent experience demonstrates the Kuwaiti economy’s ability to quickly regain momentum once geopolitical conditions stabilize and uncertainty subsides. Al-Saqer predicted that government investments, infrastructure projects, and reforms linked to Kuwait Vision 2035 would support economic growth once stability returns.
He reaffirmed that NBK continues to leverage the strength and diversity of its operations and its geographical presence, enhancing its capacity to navigate various economic changes. The results for the first half of 2026 clearly reflected its success in sustaining growth and delivering strong performance despite challenges, underpinned by a solid balance sheet, stable asset quality, and a strong capital base, enabling it to withstand fluctuations and absorb potential repercussions of geopolitical developments.
Looking ahead, Al-Saqer stated that priority will remain on maintaining the strength of the balance sheet, liquidity levels, and capital, while continuing to execute the Group’s strategy and capitalize on growth opportunities in its markets. The Group will closely monitor economic and geopolitical developments and periodically reassess their implications.
Al-Saqer commended the proactive measures taken by the Central Bank of Kuwait (CBK) to strengthen the resilience of the banking sector and support its ability to finance the national economy amid current challenges. He confirmed that these steps reflect the prudent approach characterizing regulatory policy in Kuwait.
He pointed out that NBK maintains strong liquidity and funding levels that exceed the original regulatory requirements of Basel III standards, even prior to the recent measures announced by the CBK. He noted that the bank has not needed to utilize any of the facilities provided by the CBK under these measures, given the strength of its financial position.
Al-Saqer highlighted that asset quality continues to improve, with the non-performing loans (NPL) ratio declining to 1.22% at the end of the first half of 2026, down from 1.36% in December 2025. The NPL coverage ratio reached 256.0%.
Concluding his remarks, Al-Saqer emphasized that these indicators reflect the strength and high resilience of NBK Group’s financial position, as well as its ability to sustain growth and efficiently manage various economic changes and regional challenges. This supports its continued creation of sustainable value for its shareholders and clients, while maintaining its leading position in the region.
