NBK’s AGM approves all motions proposed by Board of Directors
KUWAIT: National Bank of Kuwait (NBK) held its Annual General Meeting (AGM) for 2023 on Saturday, March 23, 2024, with a quorum of 71.87 percent.
General Assembly for the year 2023.
The AGM approved the Board of Directors’ recommendation to distribute 25 percent cash dividend to shareholders (25 fils per share) for the second half of the financial year, bringing the total cash dividend distributions for the year to 35 percent, in addition to the distribution of 5 percent bonus shares (5 shares for every 100 shares owned).
In his speech to the AGM attendees, Hamad Al-Bahar, NBK Group Chairman, emphasized that the strong financial results achieved by the bank in 2023 highlight its unique business model and strong financial position. This performance reaffirms NBK’s dedication to providing the highest returns for shareholders and promoting sustainable growth.
Al-Bahar highlighted the multitude of successes attained by the bank in 2023, further solidifying its track record of accomplishments and leadership both domestically and internationally. These endeavors were acknowledged with numerous prestigious awards, further affirming NBK’s position of excellence.
“Our sustained achievements stem from our core strategy of diversification, which lies at the foundation of our operations. By strategically expanding our portfolio and services across various geographical locations, we mitigate risks, capitalize on potential opportunities, and reinforce our dedication to adaptability, resilience, and long-term stability.”
“We remain committed to making substantial strides in executing our strategic agenda, and we are optimistic that our accomplishments over the past year will serve as a catalyst for enhanced performance in the future,” Al-Bahar emphasized. He also underscored NBK’s robust balance sheet and stable capital foundation, highlighting their role in meeting the evolving demands of customers and delivering optimal returns for shareholders.
Al-Bahar further stated, “Our endeavors yielded improvements across all key performance indicators compared to the previous year. This underscores the effectiveness and adaptability of our long-standing strategy, solidifying our position as a safe haven for investors, depositors, wealth management clients, individuals, and businesses alike. Moreover, we remain committed to leveraging the potential of digital transformation and sustainability initiatives, while fostering collaboration with communities, corporations, and individuals to foster a brighter and more inclusive future.”
Social responsibility
Al-Bahar highlighted the bank’s prominent role in social responsibility over the past year, establishing itself as a leader in Kuwait. The bank contributed over KD 28 million across various sectors including healthcare, childcare, societal initiatives, environmental causes, sports, and education.
Expanding our footprint
Discussing the bank’s prospects for the current year, Al-Bahar remarked, “Regarding our outlook for 2024, our expansion efforts will primarily focus on Kuwait as our core market, with strategic initiatives in the GCC markets. We intend to further strengthen our presence in current markets through strategic investments. Additionally, the bank aims to introduce its proven digital banking solutions in other markets, while enhancing its footprint across MENA region.”
Unwavering commitment
Al-Bahar emphasized NBK’s unwavering dedication to upholding the highest ethical standards and governance principles. He highlighted the bank’s dynamic and proactive governance framework, which fosters transparency, accountability, and ethical conduct across all levels. Al-Bahar noted that the Board of Directors, in collaboration with the dedicated executive management team, prioritizes aligning strategic decisions with the bank’s core values to effectively serve the interests of its shareholders.
Historical earnings
Meanwhile, Isam J Al-Sager, NBK Group Vice Chairman and CEO, outlined in his speech that the bank reached its highest annual profit on record in 2023 and maintained strong profit trends. This accomplishment was supported by its diversified business model, strategic investments, and resilience in the face of various economic conditions.
Al-Sager highlighted that despite the challenging operating environment and geopolitical tensions experienced last year, the bank achieved a record profit of KD 560.6 million, marking a year-on-year growth of 10.1 percent. Additionally, the operating profit surged to KD 1.2 billion, reflecting a substantial increase of 15.6 percent.
Al-Sager further stated, “Our core segments exhibited strong performance and sustained operational momentum, particularly in our international operations and wealth management divisions. Additionally, Boubyan Bank further supported our competitive edge in the local market as the sole banking group offering both Islamic and conventional banking services in Kuwait.”
He explained that the bank maintained consistent dividend rates of 35 fils per share by the end of the year, highlighting the strong financial position of the Group and its commitment to providing shareholders with optimal returns.
He highlighted that as of December 31, 2023, total assets stood at KD 37.7 billion, marking a 3.7 percent year-on-year increase. He attributed this growth primarily to the expanding volume of the Group’s business across diverse sectors and activities.
Al-Sager also indicated that shareholders’ equity reached KD 3.7 billion, reflecting a notable annual growth of about 7.3 percent. Return on average shareholders’ equity stood at 15.0 percent, while return on average assets demonstrated strong rates, reaching 1.53 percent in 2023. Moreover, customer deposits surged to KD 21.9 billion by year end, marking an 8.8 percent increase compared to 2022. Concurrently, loans and advances experienced a growth of 6.1 percent, reaching KD 22.3 billion. Additionally, the capital adequacy ratio surpassed the minimum required levels, reaching 17.3 percent.
Challenges and opportunities
Al-Sager remarked that Kuwait encountered challenges akin to those experienced globally in 2023. However, he highlighted several opportunities seized upon during the past year. These included the sustained increase in oil prices, the flexibility observed in consumer spending, accelerated growth in the projects market compared to previous years, positive trends in employment and population growth, advancements in the refining sector, and a less hawkish monetary policy approach. These factors collectively contributed to shaping a favorable economic environment in Kuwait.
He highlighted that the remarkable achievements of the bank in the previous year were attributable to several factors, including leveraging its geographical footprint, advancing the digital transformation initiative, and maintaining a robust financial position. These aspects strengthened revenue streams while maintaining the bank’s prudent policies over the years. Consequently, this positively impacted asset quality and boosted capitalization.
Centre of attention
Al-Sager emphasized that in 2023, NBK continued its commitment to prioritizing customers by offering innovative digital services and products to support their financial objectives.
Wealth management
Al-Sager highlighted that in the previous year, NBK Wealth was introduced as a premier destination for pioneering and sophisticated wealth management solutions. It offers an extensive array of comprehensive services in private banking and advanced asset management through a global network spanning 9 cities across 5 countries. In the domain of digital transformation, Al-Sager emphasized that the bank leads among financial institutions in digital innovation, prioritizing a banking experience tailored to the actual needs and aspirations of its customers. He noted that the bank’s unwavering dedication to addressing customer needs has played a pivotal role in reshaping the lifestyles of its customers through a meticulously crafted range of digital services and products.
Sustainability momentum
Al-Sager elaborated that the bank sustained its progress in sustainability by embarking on a new trajectory for its environmental, social, and corporate governance (ESG) strategy. This involved the adoption of a formal ESG governance framework and the integration of these standards across its services and products. For instance, it introduced green mortgage loans, consumer loans for electric vehicles, financing options related to sustainability, and low-emission housing loans.
