Al-Shal: 1.4% growth in Al-Watani's total assets to KD 46.23 billion

The “Ash-Shal” report highlighted the National Bank of Kuwait’s announcement of its results for the first half of 2026, showing that the bank’s net profit (after tax) reached approximately 347.4 million dinars, an increase of 10 million dinars, or 3.0 percent, compared to approximately 337.4 million dinars achieved in the first half of 2025.

In detail, the net profit attributable to the bank’s shareholders amounted to approximately 324.8 million dinars, compared to approximately 315.3 million dinars for the same period last year, representing an increase of approximately 9.5 million dinars, or 3.0 percent. This rise in profitability is attributed to operating profit growing by a larger margin than credit loss and impairment allowances (total provisions), alongside a decrease in tax expenses.

Net operating revenues increased by approximately 30.6 million dinars, or 4.8 percent, reaching approximately 662 million dinars, compared to approximately 631.4 million dinars for the same period last year. The bank’s interest income line item (excluding Islamic financing revenues) rose by approximately 21.1 million dinars, while interest expenses (excluding Murabaha costs) increased by 14.8 million dinars.

The bank achieved net revenues from Islamic financing of approximately 110.7 million dinars, compared to approximately 106.3 million dinars for the same period last year, raising total net interest income (both conventional and Islamic segments) to approximately 500.5 million dinars, up from approximately 489.7 million dinars, an increase of approximately 10.8 million dinars, or 2.2 percent.

Total operating expenses increased by a smaller absolute amount than the rise in total operating revenues, by approximately 12.8 million dinars, or 5.3 percent, reaching approximately 252.9 million dinars, compared to approximately 240.2 million dinars in the first half of 2025. This was driven by increases in most operating expense categories.

The ratio of total expenses to total revenues stood at approximately 38.2 percent, compared to 38.0 percent. According to “Ash-Shal” estimates, assuming the exclusion of the impact of Boubayan Bank’s consolidation on operating expenses, the increase in operating expenses would be from approximately 176.2 million dinars to approximately 186.3 million dinars, representing a 5.7 percent rise.

Financial data indicates that total assets recorded an increase of approximately 620 million dinars, or 1.4 percent, reaching approximately 46.23 billion dinars, compared to approximately 45.613 billion dinars at the end of 2025. This represents an increase of approximately 2.585 billion dinars, or 5.9 percent, against approximately 43.648 billion dinars at the end of the first half of 2025. Excluding the impact of Boubayan Bank’s consolidation, the increase would be approximately 5.8 percent.

The loan and advance portfolio, including Islamic financing for customers, which constitutes the largest contributor to the bank’s assets, rose by 3.6 percent, valued at 952.6 million dinars, bringing the total portfolio to approximately 27.768 billion dinars (60.1 percent of total assets), compared to 26.816 billion dinars (58.8 percent of total assets) at the end of 2025.

The total increased by approximately 2.276 billion dinars, representing a growth rate of approximately 8.9 percent when compared to the end of the first half of 2025, when it stood at approximately 25.492 billion dinars (58.4 percent of total assets). Excluding the impact of Boubayan Bank’s consolidation in the Islamic financing segment, the growth rate could reach approximately 9.1 percent.

Al-Shal added: The figures indicate that the bank’s liabilities (excluding equity) rose by KD 647.9 million, or 1.6 percent, to reach approximately KD 40.611 billion, compared to the end of 2025. This represents an increase of about KD 2.241 billion, or a 5.8 percent rise when compared to the total at the end of the first half of last year. Excluding the impact of the consolidation of Boubayan Bank’s results, the increase stands at approximately 5.6 percent. The ratio of total liabilities to total assets was about 87.8 percent, compared to 87.9 percent for the same period in 2025.

Financial data analysis calculated on an annual basis shows that most of the bank’s profitability indicators declined compared to the same period in 2025. The return on average assets (ROA) indicator decreased slightly to about 1.5 percent, down from 1.6 percent. The return on average shareholders’ equity (ROE) fell to approximately 14.3 percent, from 15.1 percent. The return on average capital (ROC) also declined, reaching about 77.5 percent, compared to 79.1 percent. Meanwhile, earnings per share (EPS) rose, reaching about 34 fils, compared to 33 fils achieved at the end of the corresponding period in 2025. The price-to-earnings (P/E) ratio stood at about 11.9 times, down from 15.1 times (an improvement), driven by a 3.0 percent increase in EPS against a 19.3 percent decline in the share price, compared to the end of June 2025. The price-to-book (P/B) ratio was approximately 1.6 times, compared to 2.1 times.