The document analyzes the financial performance of National Bank of Kuwait (NBK) in the first half of 2018. Key points include: - Total assets grew 10% to 65 billion EGP due to a 13% increase in customer loans and a 37% rise in treasury bills. - Net profit increased 36% to 990 million EGP driven by a 45% jump in net fees and commission income, while general and administrative expenses also rose 36%. - Customer deposits grew 16% to 47.5 billion EGP from increases in certificates of deposit, time deposits, and call accounts. Loan growth was focused on debit current accounts which increased 376%.

1. Page | 1 / 1 NBK financial analysis H1-2018 November 18, 2018
Financial analysis – NATIONAL BANK OF KUWAIT (NBK) H1 2018
High profitability derived by fees& commission income, improved loan quality, reduction in interbank
exposure, high reduction in CORP DIRECT loans with significant increase in CURRENT DEBIT ACCOUTS.
Assets
o Total assets grew by +6 Bn EGP [+10%] reaching 65 Bn EGP, growth derived by the increases customer loans 4.5 Bn
EGP [+13%] reaching 38 Bn EGP [59% of TA], followed by the high growth in TBs that +3.7 Bn EGP [+37%] reaching 14
Bn EGP [21% of TA],
o High reduction in HTM investments -1.5 Bn EGP [-39%] reahing 2.3 Bn EGP,
o Reallocating short term TBs to longer time span.
o The loan growth derived by CORP loans +3.8 Bn EGP [+12%] reaching 36 Bn EGP, derived by focus on DEBIT CURRENT
ACCOUNT +8 Bn EGP [+376%] reaching 10 Bn EGP, significant reduction in CORP DIREC LOANS -4 Bn EGP [-14%]
reaching 25 Bn EGP. SYNDICATED LOANS also reduced by -108 Mb EGP [-12%] reaching 800 Mn EGP.
o INDIVIDUAL LOANS derived by PERSONAL LOANS +305 Mn EGP [+12%] reaching 2.8 Bn EGP,
o Improved asset quality with a decrease of NPLs by -1.7% points reaching 2.9%.
Liabilities
o Customer deposits grew by +7 Bn EGP [+16%] reaching 47.5 Bn EGP, derived by high growth in CDs +2 Bn EGP [+19%]
reaching 14 Bn EGP [29% of deposits].
o High increase in both TDs & CALL ACC., TDs +2 Bn EGP [+16%] reaching 14 Bn EGP [30% of deposits], CALL ACCs +1.6
Bn EGP [+13%] reaching 14 Bn EGP [29% of deposits]
Income statement
o Net profit increased by 264 Mn EGP [+36%] reaching 990 Mn EGP, with increase in NET INCOME FROM FEES & COMM.
+140 Mn EGP [+45%] reaching 335 Mn EGP,
o NII increased +100 Mn EGP [+8%] reaching 1.3 Bn EGP,
o High G&A expense that -105 Mn EGP [+36%] reaching -399 Mn EGP.
Source: Published financial statements.
Employees1,383
Branches46
ROAA1.6%
ROAE19.8%
Avg.T.A./ Avg Eqiuity12.40
G&A/ Profit before Tax31.2%
N.Fees&Comm Inc/G&A84.0%
[Liquid A./T.A.]27.6%
[Liquid A./Deposits]37.8%
[Loans / Deposits]80.8%