National Bank of Kuwait K P : Financial Results 31/3/2024

		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: [phone]	Kuwait
Al Aiban, Al Osaimi & Partners	Fax: [phone]
P.O. Box 74	[e-mail]	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.

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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.

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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.

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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.

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