National Bank of Kuwait (NBK), claimed to be the largest Kuwaiti bank, reported net profits of $844 million (KD238.1 million) for 2013 compared to $1,082 million (KD305.1 million) in 2012. Adjusting for the $289 million (KD81.5 million) exceptional gains recognized in 2012 on the consolidation of Boubyan Bank, net profits recorded a 6.5 percent year on year growth.

As of end of 2013, NBK Group’s total assets reached $66 billion (KD18.6 billion) up 12.8 percent compared to year-end 2012, while total shareholders’ equity increased by 3.3 percent year on year to $8.4 billion (KD2.37 billion).

Loans and advances reached $37.9 billion (KD10.7 billion) at year-end 2013 up 8.5 percent compared to year-end 2012 and customer deposits of $37.1 billion (KD10.5 billion), up 10.2 percent compared to last year.

Asset quality ratios continued to improve with non-performing loans (NPL) to gross loans ratio dropping to 1.96 percent in year-end 2013 from 2.75 percent in 2012 and NPL coverage ratio increasing to 200 percent at year-end 2013 from 157 percent last year.

NBK’s board of directors has recommended a cash dividend of 30 fils per share (30 percent of the par value) and 5 percent bonus shares.

Ibrahim Dabdoub, NBK’s group CEO, said: “NBK’s profits for the year affirm the group’s strong financial position, market leadership and its conservative strategy, all contributing to the high credit ratings ahead of regional and international financial institutions.”

Despite the challenges in the corporate market locally and the political instability in some of the regional markets, the bank managed to deliver a strong set of results. “We continued to focus on core banking business across our locations. In the year 2013, excluding the exceptional gain recognized last year, NBK’s net operating income grew by 10.2 percent year on year to $2,220 million (KD626.3 million),” Dabdoub added.

Dabdoub also confirmed that the domestic operating environment continued to improve and the overall outlook is turning more positive. “We have started witnessing some acceleration in the tendering, award and execution of some of the large projects as the government proves determined to advance the execution of the development plan.”

“We are focusing our efforts on the GCC countries to leverage NBK’s strong franchise there and to benefit from the strong economic outlook and the growth opportunities available. In 2013 NBK Group’s international banking profits grew by 9.5 percent year on year confirming the strength of NBK’s international operations,” Dabdoub added.