Head of NBK in “Al Arabiya”: The percentage of non-performing loans has decreased with the increase in asset quality

The net profit of the National Bank of Kuwait grew 63% in the third quarter of questyear, compared to the same quarter last year, reaching 94 million Kuwaiti dinars.

As for the end of the first nine months of questyear, grew 51% year-on-year to 254 million and 800,000 dinars.

The bank explained that the growth in earnings is due to the increase in net operating income, the decline in provisions for loans and write-downs.

For his part, Issam Al-Sager, CEO of the National Bank of Kuwait Group, said several factors supported the bank’s earnings growth, including the significant improvement in the operating environment thanks to the economic recovery, the easing of restrictions and the return to normal life, which contributed to the increase. turnover and higher credit levels. Added to these factors is the cost of risk reduction.

After the percentage of impaired loans reached 2.45% at the end of the half year, higher than the media of the Kuwaiti banking sector by 2% in that period, it decreased significantly again. Al-Sager explained that NPL levels increased in the second quarter due to the “adoption of some legal measures against certain groups to maintain the bank’s financial position in the face of various exposures. On the other hand, they are decreased in the third quarter after having standard of quality have maintained high levels. “

The CEO of the National Bank of Kuwait Group continued: “The ratio fell to 1.43%, and the reason is that during the uncertainty and uncertainty caused by the pandemic, some exposures were classified as erratic, but the improvement in the operating environment and the the gradual recovery reflected an improvement in the levels of commercial activity, for which the classification has been reclassified ”. These exposures are considered to be regular ”.

He points out that the bank took a conservative stance which led to an increase in provisions during that period, but the pace slowed as the operating environment improved.

He said: “After the challenges, ours budget it became stronger in 2021 and recorded strong growth of 7.5% year-on-year to 19 billion dinars, which has led to a gradual return to normal in the volume of business. “

Regarding the bank’s tendency to issue bonds, Al-Sager stressed that the goal is to diversify the funding base, increase conditions and improve supervisory liquidity rates, taking advantage of the good rating that has been reflected in the broad credit rates. coverage of the bank’s proposals.

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