NBK's nine-month profit rises 3.1% to KD 481.7 million as provisions double
Fees and currency gains lifted National Bank of Kuwait's income while margins narrowed, and a lower tax bill supplied almost half of the profit growth, the bank's interim statements show.
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National Bank of Kuwait made a net profit attributable to shareholders of KD 481.7 million in the nine months to 30 September 2026, up 3.1 per cent from KD 467.4 million a year earlier, according to the bank's interim condensed consolidated financial statements, which the board authorised for issue on 7 October. The results were reported by the Kuwait Times on 19 October. Read line by line, the statements show a year in which fees and foreign exchange did the work, credit provisions doubled and a lower tax bill supplied almost half of the profit growth.
The income lines
Net interest and Islamic financing income, the bank's largest revenue line, rose 0.7 per cent to KD 754.3 million. Inside it, conventional net interest income was flat at KD 587.0 million against KD 586.9 million, while net income from Islamic financing rose 3.3 per cent to KD 167.3 million. The bank's third-quarter investor presentation puts the net interest margin at 2.28 per cent, down from 2.45 per cent a year earlier.
Non-interest income grew 14.2 per cent to KD 251.4 million. Net fees and commissions rose 11.9 per cent to KD 181.6 million, net gains from dealing in foreign currencies rose 31.1 per cent to KD 40.7 million and net investment income rose to KD 27.5 million from KD 24.7 million. Non-interest income made up 25.0 per cent of net operating income, against 22.7 per cent a year earlier. Net operating income rose 3.8 per cent to KD 1,005.7 million.
| Nine months, KD thousands | 2026 | 2025 | Change |
|---|---|---|---|
| Net interest and Islamic financing income | 754,337 | 748,902 | +0.7% |
| Non-interest income | 251,395 | 220,090 | +14.2% |
| Net operating income | 1,005,732 | 968,992 | +3.8% |
| Total expenses | (380,269) | (364,601) | +4.3% |
| Operating profit before provisions | 625,463 | 604,391 | +3.5% |
| Provision charge for credit and impairment losses | (23,964) | (11,858) | +102.1% |
| Operating profit before taxation | 601,499 | 592,533 | +1.5% |
| Taxation | (86,354) | (94,111) | -8.2% |
| Profit for the period | 515,145 | 498,422 | +3.4% |
| Attributable to shareholders | 481,663 | 467,357 | +3.1% |
Costs, provisions and tax
Total expenses rose 4.3 per cent to KD 380.3 million, of which staff costs were KD 204.0 million. That left operating profit before provisions 3.5 per cent higher at KD 625.5 million. The presentation gives a cost to income ratio of 37.8 per cent, against 37.6 per cent.
The provision charge for credit and impairment losses rose to KD 24.0 million from KD 11.9 million, an increase of KD 12.1 million. Most of it fell in the third quarter: KD 17.5 million, against KD 6.4 million in the first half combined, although the quarterly charge was below the KD 22.1 million of the third quarter of 2025. Operating profit before taxation therefore rose only 1.5 per cent, or KD 9.0 million, to KD 601.5 million.
Taxation fell 8.2 per cent to KD 86.4 million from KD 94.1 million. Tax took 14.4 per cent of pre-tax profit, down from 15.9 per cent. The KD 7.8 million saving accounts for close to half of the KD 16.7 million rise in profit for the period, which reached KD 515.1 million before KD 33.5 million was attributed to non-controlling interests. On the results call, management said the effective rate was lower because tax assessments had been completed in the bank's favour, allowing some provisions to be released. Basic earnings per share were 49 fils in both periods.
The third quarter
Third-quarter profit attributable to shareholders was KD 156.9 million, up 3.1 per cent from KD 152.1 million in the same quarter of 2025, but down from about KD 189 million in the second quarter, according to the presentation. Quarterly net interest and Islamic financing income fell 2.1 per cent year on year to KD 253.8 million, while non-interest income rose to KD 89.9 million from KD 78.4 million.
Balance sheet and capital
Total assets reached KD 46.9 billion at 30 September, up 4.5 per cent on a year earlier and 2.9 per cent on December. Net loans, advances and Islamic financing rose 8.2 per cent year on year to KD 28.2 billion, and customer deposits rose 13.5 per cent to KD 27.9 billion, so deposits grew faster than lending: loans equalled 101.1 per cent of deposits, against 106.0 per cent a year earlier. Total equity was KD 5.47 billion, below KD 5.65 billion in December, while equity attributable to shareholders rose 5 per cent year on year to KD 4.65 billion.
The common equity tier 1 ratio rose to 12.8 per cent from 12.4 per cent, while the tier 1 ratio eased to 13.8 per cent from 14.3 per cent and total capital adequacy to 15.9 per cent from 16.4 per cent. The non-performing loan ratio improved to 1.29 per cent from 1.37 per cent, with coverage at 236 per cent. Return on average equity was 13.9 per cent, against 14.5 per cent.
The results follow the Central Bank of Kuwait's decision to hold its discount rate at 3.5 per cent. In Qatar, QNB reported a 4 per cent rise in nine-month profit and Dukhan Bank's impairments rose 33 per cent. On the call, NBK kept its guidance for 2026 loan growth "in the mid-to-high single-digit range" and said it expected the full-year margin to remain under pressure compared with 2025. The bank's financial year closes on 31 December.