Al-Watani enjoys liquidity and financing exceeding regulatory requirements
- First-half financial indicators reflect the Group’s strong operational performance
- International operations and Boubyan Bank contributed 38 percent to the Group’s first-half profits
- The Kuwaiti economy is capable of regaining its momentum as soon as geopolitical conditions in the region stabilize
- We appreciate the Central Bank’s proactive measures to support the resilience of the banking sector
Issam 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 Group’s strong 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.
Speaking in an interview with Al Arabiya, Al-Saqer noted that NBK reported net profits of KD 324.8 million in the first half of 2026, representing a 3 percent increase compared to the same period in 2025. Net operating revenues rose to KD 662.0 million, up 4.8 percent year-on-year.
He added that the bank continued to deliver strong profitability metrics, with return on average shareholders’ equity reaching 14.4 percent and return on average assets standing at 1.42 percent. Total loans and advances grew by 8.9 percent to KD 27.8 billion, while customer deposits increased by 13.1 percent to KD 27 billion compared to the same period last year.
Al-Saqer pointed out 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 emphasized 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 confirmed that continued growth in business volume, particularly in the loan and investment portfolios, was one of the key drivers supporting performance during the period. Net interest and Islamic financing revenues rose by 2.2 percent year-on-year to KD 500.5 million in the first half of 2026, while non-interest income recorded strong growth of 13.9 percent to KD 161.5 million.
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 NBK Group—played a pivotal role in supporting the Group’s profitability and enhancing its operational resilience. Together, they contributed 38 percent 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 delivering growth and maintaining performance stability under various economic conditions.
Regarding geopolitical developments in the region, Al-Saqer explained that after a period of relative de-escalation in geopolitical tensions, the region is witnessing renewed escalation, 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 drag on economic growth in Gulf Cooperation Council (GCC) countries and could widen fiscal deficits.
Al-Saqer added, “Regarding Kuwait, the de-escalation of tensions in recent months has helped support economic activity, while the current escalation could lead to a temporary slowdown in the pace of recovery.” He emphasized, however, that recent experience demonstrates the Kuwaiti economy’s ability to quickly regain momentum when geopolitical conditions stabilize and uncertainty subsides.
Al-Saqer affirmed that NBK continues to leverage the strength, diversification, and geographic reach of its operations, enhancing its capacity to navigate various economic shifts. He noted that the results for the first half of 2026 clearly reflected the bank’s success in sustaining growth and delivering strong performance despite challenges, underpinned by a robust balance sheet, stable asset quality, and a strong capital base. This enables the bank to withstand volatility and absorb any potential repercussions from geopolitical developments.
He added that priority in the coming period will remain focused on maintaining the strength of the balance sheet, liquidity levels, and capital, while continuing to implement the group’s strategy and capitalizing on growth opportunities in the markets where it operates. The bank will closely monitor economic and geopolitical developments and periodically reassess their implications.
Al-Saqer praised 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 the regulatory policy in Kuwait.
He clarified 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 pointed out that, given the strength of its financial position, the bank has not needed to utilize any of the facilities provided by the CBK under these measures.
Al-Saqer noted that asset quality continues to improve, with the non-performing loans (NPL) ratio declining to 1.22% by the end of the first half of 2026, compared to 1.36% in December 2025. Meanwhile, the NPL coverage ratio reached 256.0%.
Concluding his remarks, Al-Saqer reaffirmed that these indicators reflect the financial strength and high resilience of NBK Group, as well as its ability to sustain growth and efficiently manage various economic changes and regional challenges. This supports its continued delivery of sustainable value to shareholders and customers, while maintaining its leading position in the region.
