22/10/2026 06:33 AST
Shaikha Al-Bahar, Deputy Group CEO of National Bank of Kuwait (NBK), highlighted the Group's strong financial results in the first nine months of 2026, driven primarily by its core banking business despite heightened geopolitical tensions across the region.
Speaking in an interview with CNBC, Al-Bahar said the Group recorded net profits of KD 481.7 million ($1.6 billion) in the first nine months of the year, representing an increase of more than 3 percent compared with the corresponding period last year. Total assets increased by 4.5 percent, while the loan portfolio expanded by more than 8 percent, reflecting the resilience of NBK's business model and its ability to adapt to evolving economic and geopolitical conditions.
Al-Bahar attributed profit growth during the first nine months of 2026 to a 4 percent year-on-year increase in revenues, improved operating cost trends and lower provisioning charges. She noted that the Group's strong balance sheet, asset growth and quality, diversified funding base and robust capital ratios collectively underpinned its financial performance.
Al-Bahar emphasized that NBK continues to deliver balanced growth across its key business lines and geographic markets, supported by a regional and international diversification strategy that has proven effective in strengthening the Group's resilience against geopolitical challenges.
Diversified business model
Al-Bahar explained that the Group continued to navigate heightened geopolitical uncertainty, supported by its diversified business model, prudent risk management and governance framework, and disciplined execution of its strategy. She noted that since the outbreak of the war, NBK has remained focused on maintaining operational resilience and has been exceptionally successful in supporting its clients and monitoring credit and operational risks across all its markets. She highlighted the Bank's diversified business portfolio, long-standing client relationships and access to funding across multiple geographies as key strengths in navigating the challenges and evolving conditions of the current operating environment.
Al-Bahar emphasized that diversification will remain a cornerstone of NBK's growth strategy in the period ahead, noting that the Bank has significant opportunities for expansion across international markets, extending beyond its domestic market.
She affirmed that NBK will continue to focus on diversifying revenue streams and growing fee and commission income to reduce earnings sensitivity to interest rate movements. The Bank will also seek to further leverage its international operations and strengthen cross-selling of products and services across its markets to create new growth opportunities. She pointed to NBK's strong positions in consumer banking, wealth management and non-funded business activities, including letters of credit and letters of guarantee.
Al-Bahar also anticipates continued progress in optimizing the Group's asset mix, with government debt issuances under the new public debt law providing additional opportunities to deploy liquidity into high-quality assets, supporting net interest margin stability.
Geopolitical challenges
Commenting on the impact of geopolitical challenges on Kuwait's economy and banking sector, Al-Bahar noted that while the pace of growth has naturally slowed compared with the period before regional geopolitical tensions escalated, economic activity continues to demonstrate healthy levels. She highlighted that NBK Group's international presence has provided valuable opportunities to support clients and facilitate their expansion across multiple markets.
Al-Bahar also highlighted the healthy momentum in project awards in Kuwait, noting that the value of projects awarded since the beginning of the year reached approximately KD 3 billion ($9.7 billion), representing a 36 percent year-on-year increase. Meanwhile, the pipeline of projects expected to be tendered in the coming period stands at approximately KD 10 billion ($32 billion), presenting significant opportunities for the banking sector to finance projects and support economic growth.
"We see a clear commitment from the government to sustaining this momentum and accelerating project execution through stronger governance, accountability and transparency, alongside closer monitoring of implementation progress and project milestones, helping to mitigate the impact of geopolitical tensions on the national economy," she said.
Real estate financing
Turning to the approval of the real estate financing law, Al-Bahar described the development as a positive step, noting that its implementation in the coming period is expected to bring about a fundamental shift and create significant medium- to long-term growth opportunities for consumer banking, benefiting both NBK and the wider Kuwaiti banking sector.
Kuwait's economic outlook
Commenting on the outlook for Kuwait's economy, Al-Bahar explained that while the near-term outlook remains affected by regional geopolitical tensions, the medium-term outlook is positive, supported by Kuwait's strong economic fundamentals, substantial financial buffers and the pivotal role of its sovereign wealth fund, all of which reinforce the resilience of the national economy and its ability to withstand challenges.
She noted that a return to normal operating conditions would gradually strengthen economic momentum and support investment and financing activity. Over the medium term, as shipping traffic along maritime routes returns to normal, Kuwait's oil production is expected to recover, potentially exceeding pre-conflict levels. Meanwhile, continued demand for inventory replenishment is likely to support oil prices, even as GCC supplies return to the market.
Al-Bahar expressed optimism about Kuwait's economic prospects, noting that growth opportunities would improve as regional political tensions ease and the implementation of development projects and economic reforms progresses, with positive implications for the banking sector.
NBK delivered strong financial results in the first nine months of 2026, driven by its core banking business
Revenues rose 4 percent year-on-year, along with improved operating cost trends and lower provisioning charges
Our strong balance sheet, asset growth, diversified funding base and robust capital ratios underpinned financial performance
Significant growth opportunities lie ahead for NBK across international markets, extending beyond Kuwait
Sovereign debt issuances provide opportunities for banks to deploy liquidity into high-quality assets, supporting net interest margin resilience
The real estate financing law presents significant medium- to long-term growth opportunities for consumer banking
The government's KD 10 billion project pipeline offers substantial opportunities for the banking sector
We remain focused on diversifying our revenue streams to reduce earnings sensitivity to interest rate movements
We see a strong government commitment to accelerating project implementation and mitigating the economic impact of geopolitical tensions
Our medium-term outlook for Kuwait's economy remains positive, supported by strong economic fundamentals and substantial financial buffers
Growth prospects are expected to strengthen as geopolitical tensions ease and development projects and economic reforms advance
Kuwait Times
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