National Bank of Kuwait (NBK) posted a net profit of KD 135.5 million for the first quarter ending March 31, 2026, marking a modest 1 percent increase compared to KD 134.1 million in the same period last year. The bank's Vice Chairman and Group CEO, Isam Al-Sager, highlighted that this performance reflects the strength and resilience of NBK’s diversified business model amid challenging geopolitical conditions affecting the region.
Net operating income rose 6.6 percent year-on-year to KD 331.2 million, supported by a balanced mix of net interest and non-interest income. Key financial metrics remained stable, with a Return on Average Assets (ROAA) of 1.20 percent and Return on Average Equity (ROAE) of 12.2 percent. Al-Sager emphasized the bank’s strategic focus on innovation and digital banking, with ongoing enhancements to digital platforms and mobile banking services aimed at deepening customer engagement.
Al-Sager noted NBK’s continued commitment to leveraging its regional and international presence to reinforce operational efficiency and client relationships. The bank’s wealth management subsidiary, NBK Wealth, and Islamic banking arm, Boubyan Bank, remain integral to overall performance and market positioning. On sustainability, NBK exceeded its 2025 operational emissions reduction targets ahead of schedule and achieved 61 percent of its $10 billion sustainable assets goal set for 2030, further strengthening its standing on Environmental, Social, and Governance (ESG) metrics.
The bank’s performance comes against the backdrop of escalating geopolitical tensions in the Middle East, including the outbreak of war in early 2026. Al-Sager described this as one of the most severe scenarios considered in NBK’s risk assessments, with expected broad and prolonged impacts on global trade, energy supply chains, and economic activity in Kuwait and the Gulf Cooperation Council (GCC) region. Despite strong economic momentum in Kuwait during the early months of 2026, these developments are projected to slow growth across both oil and non-oil sectors. Infrastructure project awards reached approximately KD 1.8 billion in the first quarter, underscoring ongoing government commitment to large-scale development, although future activity remains subject to geopolitical and supply chain uncertainties.
From a regional perspective, the GCC economies have experienced a slowdown amid heightened uncertainty, though their solid financial reserves are expected to support a recovery once the conflict eases. NBK’s Group Chief Financial Officer, Sujit Ronghe, underscored the bank’s operational continuity and adaptability throughout this volatile period. He noted that the first-quarter net profit also surpassed the previous quarter’s by KD 27.2 million, driven by strong business momentum and lower credit loss provisions.
Total assets expanded 10.7 percent year-on-year to KD 46.1 billion, while gross loans and advances increased 10.9 percent to KD 27.3 billion. The loan portfolio remains well-diversified across sectors, with personal lending accounting for 28 percent, predominantly composed of salary-assigned facilities to Kuwaiti nationals employed mainly in the government sector. NBK maintains a robust liquidity position, with the Liquidity Coverage Ratio at 161 percent and the Net Stable Funding Ratio at 106 percent, both comfortably exceeding Basel III regulatory requirements. The capital adequacy ratio stood at 16.4 percent.
Ronghe also praised recent supportive measures introduced by the Central Bank of Kuwait aimed at strengthening the banking sector’s resilience. Looking ahead, NBK anticipates gradual improvement in the operating environment during 2026, with revised loan growth forecasts in the mid-to-high single-digit range. The bank expects the cost of risk to remain near normalized levels despite ongoing challenges, maintaining a cautiously optimistic outlook for the remainder of the year.