Deloitte & Touche | ||
Al-Wazzan & Co. | ||
Ahmed Al-Jaber Street, Sharq | ||
Dar Al-Awadi Complex, Floors 7 & 9 | ||
P.O. Box 20174, Safat 13062 | ||
Ernst & Young | Tel: +965 2295 5000 | Kuwait |
Al Aiban, Al Osaimi & Partners | Fax: +965 2245 6419 | |
P.O. Box 74 | kuwait@kw.ey.com | Tel : + 965 22408844, 22438060 |
18-21st Floor, Baitak Tower | ey.com/mena | Fax: + 965 22408855, 22452080 |
Ahmed Al Jaber Street | ||
www.deloitte.com | ||
Safat Square 13001, Kuwait |
REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF NATIONAL BANK OF KUWAIT S.A.K.P.
Introduction
We have reviewed the accompanying interim condensed consolidated statement of financial position of National Bank of Kuwait S.A.K.P. (the "Bank") and its subsidiaries (collectively the "Group") as at 31 March 2024, and the related interim condensed consolidated statement of income, interim condensed consolidated statement of comprehensive income, interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the three months period then ended. The management of the Bank is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with the basis of presentation set out in Note 2. Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with the basis of presentation set out in Note 2.
Report on Other Legal and Regulatory Requirements
Furthermore, based on our review, the interim condensed consolidated financial information is in agreement with the books of account of the Bank. We further report that, to the best of our knowledge and belief, we have not become aware of any violations of the Companies Law No. 1 of 2016, as amended, and its executive regulation, as amended, or of the Bank's Articles of Association and Memorandum of Incorporation, as amended, during the three months period ended 31 March 2024 that might have had a material effect on the business of the Bank or on its financial position.
We further report that, during the course of our review, to the best of our knowledge and belief, we have not become aware of any violations of the provisions of Law No. 32 of 1968, as amended, concerning currency, the Central Bank of Kuwait and the organization of banking business, and its related regulations, during the three months period ended 31 March 2024 that might have had a material effect on the business of the Bank or on its financial position.
ABDULKARIM ALSAMDAN | BADER A. AL-WAZZAN |
LICENCE NO. 208 A | LICENCE NO. 62 A |
EY | DELOITTE & TOUCHE |
AL AIBAN, AL OSAIMI & PARTNERS | AL-WAZZAN & CO. |
23 April 2024 | |
Kuwait |
National Bank of Kuwait Group
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME
31 March 2024 (Unaudited)
Three months ended
2024 | 31 March | |
2023 | ||
Notes | KD 000's | KD 000's |
Interest income | 452,047 | 361,366 | |
Interest expense | 262,873 | 190,673 | |
───────── | ───────── | ||
Net interest income | 189,174 | 170,693 | |
───────── | ───────── | ||
Murabaha and other Islamic financing income | 110,584 | 92,197 | |
Finance cost and Distribution to depositors | 61,644 | 51,138 | |
───────── | ───────── | ||
Net income from Islamic financing | 48,940 | 41,059 | |
───────── | ───────── | ||
Net interest income and net income from Islamic financing | 238,114 | 211,752 | |
───────── | ───────── | ||
Net fees and commissions | 53,185 | 51,392 | |
Net investment income | 6,783 | 5,813 | |
Net gains from dealing in foreign currencies | 10,248 | 7,984 | |
Other operating income | 635 | 921 | |
───────── | ───────── | ||
Non-interest income | 70,851 | 66,110 | |
───────── | ───────── | ||
Net operating income | 308,965 | 277,862 | |
───────── | ───────── | ||
Staff expenses | 58,858 | 54,851 | |
Other administrative expenses | 40,696 | 35,629 | |
Depreciation of premises and equipment | 11,514 | 10,573 | |
Amortisation of intangible assets | 412 | 412 | |
───────── | ───────── | ||
Operating expenses | 111,480 | 101,465 | |
───────── | ───────── | ||
Operating profit before provision for credit losses and impairment losses | 197,485 | 176,397 | |
Provision charge for credit losses and impairment losses | 3 | 25,499 | 28,100 |
───────── | ───────── | ||
Operating profit before taxation | 171,986 | 148,297 | |
Taxation | 4 | 15,754 | 9,023 |
───────── | ───────── | ||
Profit for the period | 156,232 | 139,274 | |
Attributable to: | ═════════ | ═════════ | |
146,581 | |||
Shareholders of the Bank | 134,203 | ||
Non-controlling interests | 9,651 | 5,071 | |
───────── | ───────── | ||
156,232 | 139,274 | ||
═════════ | ═════════ | ||
Basic earnings per share attributable to shareholders of the Bank | 5 | 17 fils | 15 fils |
═════════ | ═════════ |
The attached notes 1 to 13 form part of this interim condensed consolidated financial information.
2
National Bank of Kuwait Group
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
31 March 2024 (Unaudited)
Three months ended | ||
31 March | ||
2024 | 2023 | |
KD 000's | KD 000's | |
Profit for the period | 156,232 | 139,274 |
Other comprehensive income (loss) | ───────── | ───────── |
Investment in debt securities measured at FVOCI : | 27,271 | |
Net change in fair value | (29,489) | |
Net transfer to interim condensed consolidated statement of income | 628 | 619 |
───────── | ───────── | |
27,899 | (28,870) | |
Exchange differences on translation of foreign operations | (65,841) | (25,289) |
Other comprehensive loss for the period reclassifiable to | ───────── | ───────── |
(37,942) | (54,159) | |
interim condensed consolidated statement of income in subsequent periods | ||
Net loss on investments in equity instruments designated at FVOCI (not reclassifiable to interim | (418) | |
condensed consolidated statement of income in subsequent periods) | (28) | |
───────── | ───────── | |
Other comprehensive loss for the period | (38,360) | (54,187) |
═════════ | ═════════ | |
Total comprehensive income for the period | 117,872 | 85,087 |
Attributable to: | ═════════ | ═════════ |
107,598 | ||
Shareholders of the Bank | 82,616 | |
Non-controlling interests | 10,274 | 2,471 |
───────── | ───────── | |
117,872 | 85,087 | |
═════════ | ═════════ |
The attached notes 1 to 13 form part of this interim condensed consolidated financial information.
3
National Bank of Kuwait Group
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 March 2024 (Unaudited)
31 March | Audited | 31 March | ||
31 December | ||||
2024 | 2023 | 2023 | ||
Assets | Notes | KD 000's | KD 000's | KD 000's |
4,271,244 | ||||
Cash and short term funds | 4,384,700 | 5,108,257 | ||
Central Bank of Kuwait bonds | 859,682 | 856,815 | 893,538 | |
Kuwait Government treasury bonds | 192,764 | 194,111 | 198,441 | |
Deposits with banks | 1,918,465 | 1,318,121 | 1,427,160 | |
Loans, advances and Islamic financing to customers | 6 | 22,389,414 | 22,281,004 | 21,189,473 |
Investment securities | 6,899,771 | 6,884,821 | 5,970,157 | |
Land, premises and equipment | 496,892 | 506,812 | 474,709 | |
Goodwill and other intangible assets | 508,010 | 508,416 | 529,910 | |
Other assets | 791,613 | 730,191 | 672,030 | |
Total assets | ──────── | ──────── | ──────── | |
38,327,855 | 37,664,991 | 36,463,675 | ||
════════ | ════════ | ════════ | ||
Liabilities | 4,181,296 | |||
Due to banks | 3,963,802 | 4,021,252 | ||
Deposits from other financial institutions | 3,068,456 | 3,725,629 | 3,700,514 | |
Customer deposits | 22,271,091 | 21,948,957 | 20,436,400 | |
Certificates of deposit issued | 1,643,823 | 822,899 | 1,480,744 | |
Other borrowed funds | 1,237,072 | 1,331,006 | 1,371,457 | |
Other liabilities | 1,119,186 | 966,123 | 942,961 | |
Total liabilities | ──────── | ──────── | ──────── | |
33,520,924 | 32,758,416 | 31,953,328 | ||
Equity | ──────── | ──────── | ──────── | |
792,995 | 792,995 | 755,233 | ||
Share capital | 7 | |||
Proposed bonus shares | 7 | 39,649 | 39,649 | 37,762 |
Statutory reserve | 396,499 | 396,499 | 377,618 | |
Share premium account | 803,028 | 803,028 | 803,028 | |
Treasury shares reserve | 34,961 | 34,961 | 34,961 | |
Other reserves | 7 | 1,720,432 | 1,816,640 | 1,502,082 |
Equity attributable to shareholders of the Bank | ──────── | ──────── | ──────── | |
3,787,564 | 3,883,772 | 3,510,684 | ||
Perpetual Tier 1 Capital Securities | 8 | 439,032 | 439,032 | 439,032 |
Non-controlling interests | 580,335 | 583,771 | 560,631 | |
Total equity | ──────── | ──────── | ──────── | |
4,806,931 | 4,906,575 | 4,510,347 | ||
Total liabilities and equity | ──────── | ──────── | ──────── | |
38,327,855 | 37,664,991 | 36,463,675 | ||
════════ | ════════ | ════════ |
Hamad Mohamed Al-Bahar
Chairman
The attached notes 1 to 13 form part of this interim condensed consolidated financial information.
4
National Bank of Kuwait Group
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
31 March 2024 (Unaudited)
Three months ended
31 March | |||
2024 | 2023 | ||
Operating activities | Notes | KD 000's | KD 000's |
156,232 | |||
Profit for the period | 139,274 | ||
Adjustments for: | (6,783) | ||
Net investment income | (5,813) | ||
Depreciation of premises and equipment | 11,514 | 10,573 | |
Amortisation of intangible assets | 412 | 412 | |
Provision charge for credit losses and impairment losses | 3 | 25,499 | 28,100 |
Taxation | 4 | 15,754 | 9,023 |
───────── | ───────── | ||
Cash flow from operating activities before changes in operating assets and liabilities | 202,628 | 181,569 | |
Changes in operating assets and liabilities: | (2,867) | ||
Central Bank of Kuwait bonds | (12,297) | ||
Kuwait Government treasury bonds | - | 14,968 | |
Deposits with banks | (599,550) | 66,983 | |
Loans, advances and Islamic financing to customers | (331,497) | (217,871) | |
Other assets | (3,417) | 100,912 | |
Due to banks | 217,500 | 3,273 | |
Deposits from other financial institutions | (649,973) | (40,363) | |
Customer deposits | 584,214 | 258,338 | |
Certificates of deposit issued | 820,924 | (320,879) | |
Other liabilities | (95,345) | (19,134) | |
Tax paid | (8,948) | (2,996) | |
───────── | ───────── | ||
Net cash from operating activities | 133,669 | 12,503 | |
Investing activities | ───────── | ───────── | |
(962,580) | |||
Purchase of investment securities | (896,542) | ||
Proceeds from sale/redemption of investment securities | 823,610 | 581,737 | |
Dividend income | 145 | 12 | |
Change in holding in subsidiaries | 22 | (5,457) | |
Proceeds from sale of land, premises and equipment | - | 917 | |
Purchase of land, premises and equipment | (10,583) | (8,136) | |
Purchase of investment properties | - | (21,773) | |
Proceeds from sale of investment properties | 1,424 | - | |
───────── | ───────── | ||
Net cash used in investing activities | (147,962) | (349,242) | |
Financing activities | ───────── | ───────── | |
(3,907) | |||
Interest paid on Perpetual Tier 1 Capital Securities | (3,900) | ||
Profit distribution on Perpetual Tier 1 Sukuk by a subsidiary | (3,036) | (3,027) | |
Net movement in other borrowed funds | (92,220) | 128,471 | |
───────── | ───────── | ||
Net cash (used in) from financing activities | (99,163) | 121,544 | |
───────── | ───────── | ||
Decrease in cash and short term funds | (113,456) | (215,195) | |
Cash and short term funds at 1 January | 4,384,700 | 5,323,452 | |
───────── | ───────── | ||
Cash and short term funds at 31 March | 4,271,244 | 5,108,257 | |
════════ | ════════ |
The attached notes 1 to 13 form part of this interim condensed consolidated financial information.
5
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NBK - National Bank of Kuwait SAK published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2024 06:03:06 UTC.