The Banking Executive Magazine - January 2022 Issue

NBK government spending and project awarding, which reached KD 1.5 bil- lion in 2021.” “NBK delivered robust growth and strong financial performance across business lines. Regardless of the con- tinued low interest rate environment, the Bank’s resilient loans and de- posits growth contributed positively and supported in maintaining stable margins,” he added. “Thanks to the proactive and conser- vative approach that NBK adopted since the beginning of the pandemic, we now bear the fruits of recording lower cost of risk levels which con- tributed positively in growing our bottom line profits. Our operating in- come for the year increased by 7.6% to reach KD 906.3 million; driven by a robust growth in core banking in- come,” he mentioned. Al-Sager noted: “The Group contin- ued towards achieving its strategic objectives with wealth management and Islamic banking conveying de- cent growth and further endorsed its financing dominance and capabili- ties across retail and corporate seg- ments. Moreover, our non-interest income continues to grow, taking ad- vantage of the different markets where we operate and the strong re- lationships the Bank has established with its customers over many years.” “Our digital transformation contin- ued to accelerate this year, driving ef- ficiency and enhanced customer experience, while we also laid the foundation for future growth by launching Weyay, Kuwait’s first digi- tal bank, to better attract and serve the needs of the youth,” he high- lighted. Al-Sager mentioned that “During 2021, NBK added a pool of presti- gious awards in recognition of the quality of services and products de- livered to clients. Likewise, the Bank asserted itself as a leading global fi- nancial institution issuer in the re- gion as we succeeded in issuing two bonds to further enhance its capital- ization & liquidity levels and to di- versify the Group’s funding profile. The issuances marked a milestone for the Bank and further endorsed in- vestors’ continuous confidence in the Bank’s prudent management and confidence in overcoming crises.” “In 2022, we will intensify our focus in constantly designing and deliver- ing innovative propositions to our clients. We will also upgrade our dig- ital infrastructure foundations to en- rich customers’ experience and to serve as a springboard for regional growth and expansion; as well as in- vesting heavily in our people – who represent the engine of our growth and success,” he promised. “NBK will remain agile in position- ing and endorsing ESG as a core principle to the way we conduct and operate our business, with initiatives in relation to identifying and quanti- fying ESG already in place. Our com- mitment is ongoing, with special focus on assessing the direct and in- direct environmental impact of our operations, especially as the risks of climate change continue to emerge.” Performance and operating high- lights FY 2021: • Total assets grew by 11.9% year- on-year, to KD 33.3 billion (USD 109.9 billion) • Net operating income of KD 906.3 million (USD 3.0 billion), increas- ing by 7.6% compared to FY 2020 • Customer deposits increased by 6.9% year-on-year to KD 18.3 bil- lion (USD 60.4 billion) • Total loans and advances grew by 12.7% year-on-year to KD 19.7 bil- lion (USD 65.2 billion) • Shareholders’ equity stood at KD 3.3 billion (USD 11.0 billion) • Strong asset quality metrics, with NPL/gross loans ratio at 1.04% and an NPL coverage ratio of 300% • Robust Capital Adequacy Ratio of 18.1%, comfortably in excess of regulatory requirements ISSUE 157 JANUARY 2022 the BANKING EXECUTIVE 25