Egyptian arm of Kuwait’s banking giant delivers 30% surge in half-year net profit, defying market headwinds
National Bank of Kuwait-Egypt is riding a solid wave of earnings momentum. The lender reported a 30% jump in net profit for the first half of 2025, fueled by hefty gains in interest income and steady loan growth despite Egypt’s choppy economic waters.
NBK-Egypt clocked in EGP 4.1 billion in net profit for H1 2025, up from EGP 3.2 billion a year earlier. Behind those numbers? Strong lending activity, disciplined operations, and a strategic foothold in one of MENA’s fastest-moving banking markets.
Profit margins swell as interest income takes center stage
There’s no doubt what drove the bottom line: interest income. The bank pulled in EGP 6.7 billion in net interest income, marking a sharp 31% year-on-year rise.
That wasn’t all. Total operating income hit EGP 7.7 billion — a 28% increase. While that’s a headline figure, the details show how diverse the bank’s income streams have become.
Net operating income excluding interest reached EGP 199 million, up from EGP 147 million — a 35% jump. That might seem small compared to interest income, but it’s a clear signal that the bank is expanding into fee-based services and non-interest activities.
Cost efficiency? Holding up, but just. The cost-to-income ratio edged up slightly to 24% from 23%, a marginal increase but still within acceptable territory for a growing bank.
One executive at a competing Cairo-based bank described the performance as “lean and aggressive,” adding, “NBK-Egypt’s margins suggest it isn’t just about top-line growth, but efficiency and execution.”
Asset growth steady but loans do the heavy lifting
NBK-Egypt didn’t just grow profits — it added heft to its balance sheet too. The bank’s total assets reached EGP 206 billion by the end of June 2025, up 5% from EGP 196 billion at the close of 2024.
But it was the loan book that did most of the pushing.
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Total loans and credit facilities rose to EGP 115 billion, a 10% increase.
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Customer deposits inched up to EGP 166 billion from EGP 160 billion — a 4% gain.
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Asset growth was driven more by lending than by deposit accumulation.
This data reflects a more confident lending environment, despite concerns over inflation, FX volatility, and a still-recovering domestic demand cycle in Egypt.
One-liner here: Loans did the heavy lifting, no doubt.
Key financial metrics point to better returns
NBK-Egypt is squeezing more from each pound.
The bank’s return on average assets (ROAA) climbed to 4%. That’s no small feat in a region where banks often hover around the 1–2% mark. Meanwhile, return on average equity (ROAE) hit 35%, further underlining capital efficiency.
Table: Key Metrics – NBK Egypt H1 2025 vs H1 2024
| Metric | H1 2025 | H1 2024 | YoY Change |
|---|---|---|---|
| Net Profit (EGP) | 4.1 billion | 3.2 billion | +30% |
| Net Interest Income (EGP) | 6.7 billion | 5.2 billion | +31% |
| Total Assets (EGP) | 206 billion | 196 billion | +5% |
| Loans & Credit (EGP) | 115 billion | 104 billion | +10% |
| Customer Deposits (EGP) | 166 billion | 160 billion | +4% |
| ROAA | 4% | Not stated | ↑ |
| ROAE | 35% | Not stated | ↑ |
With those kinds of returns, it’s no wonder investors and analysts are taking note. Even with minor increases in cost ratios, profitability metrics show strong fundamentals.
Long-term strategy finally paying off
This wasn’t an overnight story. NBK entered Egypt in 2007. It took them nearly two decades to build deep roots. But now, the branches are bearing fruit.
Shaikha Al-Bahar, Deputy Group CEO of National Bank of Kuwait and Chair of NBK-Egypt, was bullish in her statement. She called the results a testament to “the bank’s solid financial standing and the enduring strength of its business model.”
That model — as Egypt weathers fiscal reforms, fluctuating interest rates, and a slowly stabilizing pound — seems to be finding its stride.
Her tone was confident, but measured. “This performance stands as a testament to the Group’s long-term strategic vision since its entry into the Egyptian market,” she said. That’s corporate speak, yes. But there’s truth in it.
Egypt’s banking landscape remains competitive
Despite the gains, NBK-Egypt isn’t alone in showing growth.
Several other Egyptian and regional banks have reported mid- to high-single-digit growth in recent quarters. The real question is how sustainable it is amid inflationary pressures and currency risk.
Egypt’s central bank has held interest rates relatively high to anchor inflation. While this benefits banks in the short term, the risk of default or lower credit appetite always looms.
Still, the fundamentals are holding. Banking in Egypt continues to be driven by:
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High demand for SME and retail credit
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Untapped digital banking potential
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Strong state-backed infrastructure financing
This dynamic helps foreign-affiliated banks like NBK-Egypt stay aggressive without taking undue risk.
Short and sweet: Competition’s tight. But NBK-Egypt isn’t blinking.
What’s next for NBK-Egypt?
There are whispers that the bank may eye fintech investments next. Insiders say NBK-Egypt has been exploring ways to bolster its mobile banking platforms and expand into underserved digital segments, especially in rural Upper Egypt.
Others hint at cross-border lending strategies, possibly linking up operations across North Africa.
For now, though, the bank seems focused on keeping its profit engine well-oiled.
Al-Bahar’s team has said little publicly about the second-half outlook, but analysts suggest NBK-Egypt will aim to maintain double-digit profit growth for the rest of 2025. No small feat in a year like this.
