National Bank of Kuwait – Egypt (NBK-Egypt) has announced net profits of $26.8 million (EGP 1.28 billion) for the first quarter of 2024, a 96.32% increase from the EGP 652 million reported in the first quarter of 2023.
Net operating income stood at EGP 2.75 billion, up 48.6% from EGP 1.85 billion recorded in the corresponding period of 2023. Net interest income grew by 53.9% to reach EGP 2.37 billion compared to EGP 1.54 billion in Q1 2023.
The bank’s net operating income (excluding interests) increased to EGP 382.67 million in 1Q2024, compared to EGP 321.64 million in 1Q2023, up by 18.97%, while the cost to net operating income dropped from 37.51% in 1Q2023 to 26.15% in 1Q2024.
Ms. Shaikha Al-Bahar, Deputy Group Chief Executive Officer of National Bank of Kuwait, and Chairman of NBK-Egypt said that Egypt remains one of the most prominent strategic markets for the growth of the banking group’s business.
“We are committed to enhancing the quality of our services, expanding our geographical footprint, and reaching a more diverse customer base. This is made possible by the significant advancements in our digital infrastructure, information technology, and electronic channels,” said Al-Bahar.
Total assets reached EGP 155.56 billion in Q1 2024, up by 19.10% compared to the year-end balance of EGP 130.61 billion in 2023.
Furthermore, the net balance of loans and credit facilities expanded to EGP 86.14 billion in Q1 2024, reflecting a growth rate of 13.25% compared to EGP 70.06 billion recorded at the end of 2023, including a 45.5% increase recorded by the loans and credit facilities in foreign currencies on the back of the appreciation of foreign currencies against the Egyptian pound.
Meanwhile, customer deposits grew by 19.64% to reach EGP 126.73 billion in Q1 2024, compared to EGP 105.93 billion by the end of 2023. This includes a 52.1% rise in the balance of customer deposits in foreign currencies, influenced by the appreciation of the exchange rate and higher return rates on deposits.
The return on average assets (ROAA) rose from 2.5% in Q1 2023 to 3.6% in Q1 2024, while the return on average equity (ROAE) increased from 23.7% in Q1 2023 to 33.6% in Q1 2024.
