National Bank of Kuwait: 2Q26: net income beat on provisions release – reiterate Underperform

Research evidence excerpt

National Bank of Kuwait: 2Q26: net income beat on provisions release – reiterate Underperform

iQprofile SM National Bank of Kuwait

Key Income Statement Data (Dec) 2024A 2025A 2026E 2027E 2028E Company Sector

(KWD Millions) IFRS IFRS IFRS IFRS IFRS Banks-Multinational/Universal

Net Financing and Inv. Income 980 1,000 1,018 1,119 1,174

Net Fee Income 206 217 229 244 268

Securities Gains / (Losses) 23.0 33.9 36.4 39.2 42.5 Company Description Other Income 42.5 46.6 57.1 60.5 65.4

Total Non-Interest Income 271 297 323 344 376 NBK is the leading banking institution in Kuwait with 60-

Total Operating Income 1,251 1,297 1,341 1,463 1,550 70% market share in selected conventional products. It is

Operating Expenses (468) (498) (519) (556) (585) the only bank in Kuwait that operates in both conventional

Pre-Provision Profit 783 799 822 907 965 and Islamic banking - the latter through its subsidiary

Provisions Expense (86.5) (64.5) (93.4) (138) (126)

Boubyan Bank. It has 67 branches in Kuwait and a presence

Operating Profit 697 735 729 770 839

Non-Operating Items 0 0 0 0 0 across MENA and international financial centres with 71

Pre-Tax Income 697 735 729 770 839 more branches, most notably 53 in Egypt. It services 75%

Net Income to sh/holders 578 558 547 566 620 of foreign companies in Kuwait. The Kuwait Pension Fund

Adjusted Cash Earnings 578 558 547 566 620 owns a minority 6% stake.

Key Balance Sheet Data

Total Assets 40,338 45,613 47,488 51,551 56,353

Average Interest Earning Assets 34,616 37,281 39,594 41,650 44,739 Investment Rationale

Risk Weighted Assets 27,602 30,786 31,427 34,116 37,294 NBK is a dominant player with strong positions in the

Total Gross Customer Loans 24,572 27,718 29,386 32,034 35,169

domestic market. However, ROAE will likely remain below