Al-Saqer: "National" has liquidity and funding that exceed regulatory requirements
The Deputy Chairman and Chief Executive Officer of NBK Group, Essam Al-Saqer, confirmed that the financial indicators for the first half of 2026 reflect the strong operational performance of the Group, benefiting from the flexibility of its business model, diversified income sources, and wide geographical presence. These factors have enhanced its ability to sustain growth and maintain strong performance, despite the economic challenges and geopolitical developments witnessed in the region.
During an interview with Al Arabiya, Al-Saqer stated that NBK recorded net profits of KD 324.8 million in the first half of 2026, representing a 3% growth compared to the same period in 2025. Meanwhile, net operating income rose to KD 662 million, a 4.8% increase on an annual basis. He added that the bank continued to achieve strong profitability indicators, 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% annually to KD 27.8 billion, while customer deposits increased by 13.1% to KD 27 billion compared to the same period last year.
Al-Saqer noted 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 helped mitigate the impact of various economic changes. 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 emphasized that continued growth in business volume, particularly in the loan and investment portfolios, was one of the key factors supporting performance during the period. Net interest and Islamic financing income rose by 2.2% annually to KD 500.5 million in the first half of 2026, while non-interest income recorded strong growth of 13.9%, reaching KD 161.5 million.
Al-Saqer highlighted that the strategy of diversifying income sources continued to yield positive results. International operations and Islamic banking services through Boubyan Bank – the Islamic banking arm of NBK Group – played a pivotal role in supporting the Group’s profitability and enhancing its operational resilience. Together, they 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 explained that after a period of relative decline in geopolitical tensions, the region is witnessing a renewed escalation in events, leading to increased uncertainty levels regionally and globally. While the full impact of these developments remains unclear, the persistence of uncertainty poses a pressure on economic growth in Gulf countries and could widen fiscal deficits. He added, “For Kuwait, the reduction in tensions during the previous period helped support economic activity, while the current escalation may lead to a temporary slowdown in the recovery pace.” He affirmed, however, that recent experience shows the Kuwaiti economy’s ability to quickly regain momentum when 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 confirmed that NBK continues to leverage the strength and diversity of its business and its geographical presence, enhancing its ability to navigate various economic changes. The results of the first half of 2026 clearly reflected its success in sustaining growth and delivering strong performance despite challenges, supported by a solid balance sheet, stable asset quality, and a strong capital base. This enables it to withstand fluctuations and absorb any potential repercussions of geopolitical developments.
He added that priority in the coming phase will remain focused on maintaining balance sheet strength, liquidity levels, and capital, while continuing to implement 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.
Praising the proactive measures taken by the Central Bank of Kuwait to strengthen the banking sector and support its capacity to finance the national economy amid current challenges, Al-Saqer affirmed that these steps reflect the precautionary approach characterizing the regulatory policy in Kuwait. He clarified that NBK maintains strong liquidity and funding levels exceeding the original regulatory requirements of Basel III, even before the Central Bank’s recent measures. He noted that the bank has not needed to utilize any of the facilities provided by the Central Bank under these measures, given its strong financial position.
Al-Saqer pointed out that asset quality continues to improve, with the non-performing loans ratio declining to 1.22% at the end of the first half of 2026, compared to 1.36% in December 2025. The coverage ratio for non-performing loans reached 256%.
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 handle various economic changes and regional challenges. This supports its continued achievement of sustainable value for its shareholders and customers, while maintaining its leading position in the region.
