The National Bank of Kuwait’s Egyptian arm started the year on a high note, delivering EGP 2 billion in net profit during the first quarter of 2025 — a 58% jump from the same period last year.
The bank, which has been steadily expanding its footprint in Egypt, seems to be reaping the rewards of a focused strategy and rising market demand for credit. With stronger interest income and a slight edge in cost efficiency, NBK-Egypt is painting a picture of stability amid broader financial volatility.
A Profitable Start to 2025
NBK-Egypt’s Q1 earnings weren’t just good — they were record-setting. Compared to EGP 1.3 billion in Q1 2024, this year’s EGP 2 billion figure marks a standout performance.
It wasn’t just bottom-line numbers. Net Operating Income jumped 38%, hitting EGP 3.8 billion. Net Interest Income alone contributed EGP 3.3 billion, up a whopping 41% from last year’s EGP 2.4 billion. Basically, money from lending and investments did the heavy lifting.
There’s more — Non-interest income (like fees and commissions) rose 20% to EGP 0.5 billion. Not game-changing, but still a healthy indicator of diversified revenue sources.
And they tightened the belt too. Cost-to-income ratio edged down from 26% to 25%, hinting at better operational discipline.
The Asset Engine Keeps Chugging
Total assets stood at EGP 203 billion by end of March 2025. That’s a 4% bump from December 2024’s EGP 196 billion.
Customer deposits also went up, albeit modestly — from EGP 160 billion to EGP 164 billion. That’s a 3% increase, showing solid trust among clients even in a high-inflation environment.
But where things really moved? Lending.
The bank’s total loans and credit facilities hit EGP 109 billion — up from EGP 104 billion at year-end. That’s around 5% growth in three months, indicating real traction in the retail and corporate credit space.
Metrics That Matter: ROAA and ROAE on the Rise
Two key metrics stood out this quarter.
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Return on Average Assets (ROAA): Improved from 3.6% in Q1 2024 to 4.1% in Q1 2025.
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Return on Average Equity (ROAE): Rose from 33.6% to a strong 35.8%.
What this means is simple: the bank is squeezing more profit from every pound in assets and equity. That efficiency adds serious value, especially for shareholders.
In a market as volatile as Egypt’s — where currency swings, inflation, and policy shifts can rattle the best-laid plans — this kind of performance isn’t just impressive. It’s rare.
Here’s a Snapshot of the Key Financials
Let’s break it down with actual numbers. Because that’s what real confidence looks like.
| Metric | Q1 2024 | Q1 2025 | Growth % |
|---|---|---|---|
| Net Profit | EGP 1.3B | EGP 2B | +58% |
| Net Operating Income | EGP 2.8B | EGP 3.8B | +38% |
| Net Interest Income | EGP 2.4B | EGP 3.3B | +41% |
| Non-Interest Operating Income | EGP 0.4B | EGP 0.5B | +20% |
| Total Assets | EGP 196B | EGP 203B | +4% |
| Loans & Credit Facilities | EGP 104B | EGP 109B | +5% |
| Customer Deposits | EGP 160B | EGP 164B | +3% |
| ROAA | 3.6% | 4.1% | — |
| ROAE | 33.6% | 35.8% | — |
| Cost to Net Operating Income | 26% | 25% | — |
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Confidence from the Top, Optimism Across the Board
Shaikha Al-Bahar, Deputy Group CEO of NBK and Chair of NBK-Egypt, was quick to frame the numbers in broader terms.
“This isn’t just a quarterly win. It’s proof of how solid our model is and how well our team is executing, even when things get tricky,” she said.
Her tone wasn’t just celebratory. It was firm, hinting at ambition beyond Egypt’s borders. NBK-Egypt’s performance, after all, reflects Kuwait’s broader banking strategy in the region — blending local presence with regional power.
She credited the gains to a resilient team and a flexible approach, able to absorb shocks while still pressing forward with growth.
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Reading Between the Lines: What’s Driving It?
So why is NBK-Egypt doing so well right now? A few reasons stand out.
• Interest Rate Environment: Egypt’s central bank has kept rates elevated to battle inflation. That makes lending more lucrative for banks.
• Lending Push: The bank’s aggressive stance on corporate and retail loans is starting to pay off.
• Operational Efficiency: Trimming cost-to-income ratios, even slightly, adds up over time.
• Customer Base Confidence: Growing deposits hint that customers aren’t just staying put — they’re trusting NBK with more of their money.
Outlook: Steady As She Goes or Room for More?
With a 58% jump in profit and a balanced asset-liability sheet, NBK-Egypt is in a sweet spot. But the question now is — can they sustain it?
Inflation pressures and currency risks still linger. And the Egyptian economy, while resilient, remains exposed to global headwinds and domestic challenges.
But the bank doesn’t appear fazed. Their early 2025 form shows a clear playbook: lean into lending, manage costs, and build customer trust.
If that trend continues into Q2 and Q3, NBK-Egypt might just make 2025 one for the record books.
