Sheikha Al-Bahr: Diversification Supports NBK's Resilient Performance Amid Regional Challenges

Sheikha Al-Bahr, Deputy Chief Executive Officer of NBK Group, confirmed that the group achieved strong financial results during the first nine months of 2026, despite escalating geopolitical tensions in the region, driven primarily by the performance of its core banking activities.

In an interview with CNBC, Al-Bahr stated that the group’s net profit reached 481.7 million Kuwaiti dinars ($1.6 billion US) in the first nine months of the year, representing growth exceeding 3% compared to the same period last year. Total assets rose by 4.5%, while the loan portfolio grew by more than 8%, reflecting the resilience of NBK’s business model and its ability to adapt to various economic and geopolitical shifts.

Al-Bahr attributed the profit growth in the first nine months of 2026 to a 4% year-on-year increase in revenues, alongside improved operating cost trends and lower provision burdens. She noted that the strength of the balance sheet, asset growth and quality, diversified funding sources, and robust capital ratios all contributed to supporting the group’s financial performance.

Al-Bahr emphasized that NBK continues to achieve balanced growth across its main business lines and geographic markets, supported by a regional and international diversification strategy that has proven effective in enhancing the group’s capacity to withstand geopolitical challenges.

Diversified Business Model

She explained that the group continued to navigate growing uncertainty stemming from geopolitical developments, leveraging its diversified business model, conservative risk management and governance framework, and disciplined execution of its strategy.

She stated that since the outbreak of the war, NBK has focused on maintaining its operational resilience, successfully supporting its clients and monitoring credit and operational risks across all markets in which it operates. She highlighted that the bank’s diversified business portfolio, its established and long-standing client relationships, and its ability to access funding from multiple geographic markets are key strengths in the current challenging and dynamic environment.

Al-Bahar emphasized that diversification will remain a core pillar of NBK’s growth strategy in the coming period, noting that the bank has significant opportunities to expand across multiple global markets, not just the domestic one. She confirmed that NBK will continue to focus on diversifying its revenue sources and growing fee and commission income to mitigate the impact of interest rate fluctuations on profits. Additionally, the bank aims to better leverage its international operations and enhance cross-selling of products and services across its markets to create new growth opportunities. She pointed out that NBK holds strong positions in personal banking, wealth management, and non-cash business segments such as letters of credit and guarantees.

Al-Bahar anticipated that efforts to improve the asset mix will continue, with the issuance of government debt instruments under the new Public Debt Law providing additional opportunities to deploy liquidity into high-quality assets, thereby supporting the stability of the net interest margin.

On the impact of geopolitical challenges on the Kuwaiti economy and the banking sector, Al-Bahar noted that while the growth rate has undoubtedly slowed compared to periods preceding regional geopolitical tensions, economic activity remains at healthy levels. She highlighted that NBK Group’s international presence has provided important opportunities to support clients and enable their expansion into multiple markets.

She pointed to strong growth in the pace of project awards in Kuwait, stating that the value of projects awarded since the beginning of the year reached approximately KD 3 billion (US$ 9.7 billion), representing a 36% year-on-year increase. The value of projects expected to be launched in the near future is estimated at around KD 10 billion (US$ 32 billion), presenting promising opportunities for the banking sector to contribute to project financing and support economic growth.

She said, “We observe the government’s commitment to sustaining this momentum and accelerating project implementation by enhancing governance, accountability, and transparency, and intensifying monitoring of work progress and completion stages, which helps mitigate the impact of geopolitical tensions on the national economy.”

Regarding the approval of the Real Estate Financing Law, Al-Bahar affirmed it was a positive development. She indicated that implementing the law in the coming period would bring about a fundamental shift and provide significant growth opportunities for the retail financing sector in the medium to long term, benefiting NBK and the Kuwaiti banking sector as a whole.

On her outlook for the Kuwaiti economy, Al-Bahar explained that while the short-term view remains influenced by regional geopolitical tensions, the medium-term outlook is positive due to the strength of Kuwait’s economic fundamentals, robust financial reserves, and the pivotal role of the sovereign wealth fund, all of which enhance the resilience of the national economy and its capacity to withstand challenges. She noted that the return of operating conditions to normal levels will gradually contribute to strengthening economic momentum.

She highlighted support for investments and financing activities, noting that in the medium term, as shipping activity through maritime routes returns to normal, Kuwaiti oil production is expected to recover, with the possibility of surpassing pre-conflict levels. Demand for rebuilding inventories is also likely to continue supporting prices, even as Gulf Cooperation Council (GCC) supplies return to the market. Al-Bahr expressed optimism about the future of the Kuwaiti economy, stating that growth prospects would improve as regional political tensions ease and development projects and economic reforms continue, which will have a positive impact on the banking sector.