In a highly competitive Middle East market, National Bank of Kuwait distinguishes itself through a multi-faceted strategy that underscores its resilience, visionary approach and the strength of its brand.
A well-crafted diversification strategy has allowed the Group to navigate adverse market conditions, mitigate risks and seize new growth opportunities. With a robust presence across four continents, NBK’s extensive business portfolio allows it to capitalise on regional and global opportunities.
As the only banking group in Kuwait offering both conventional and Sharia-compliant banking services, NBK has a clear competitive edge in its home market.
This strategic edge not only diversifies the bank’s revenue streams but positions it to tap into a growing and dynamic Islamic finance market.
NBK has made concerted efforts to expand the reach of its Islamic arm — Boubyan Bank — beyond Kuwait’s borders. “This is part of a broader strategy to build a global Islamic banking network and position Boubyan as a premier source of Sharia finance worldwide,” says Isam Al-Sager, NBK’s vice-chairman and group CEO.
Cutting-edge skills
Across the broader corporate banking group, there is also an unwavering commitment to extending NBK’s market leadership.
This manifests itself in deepening relationships with existing clients, while also seeking out new business opportunities — ensuring that NBK retains its top tier clients and continually expands its customer base.
Exceptional customer service, combined with a robust capital base, plays a critical role in attracting new clients who seek reliability, trust, and tailored financial solutions.
By diversifying across different customer segments and geographies, NBK has effectively mitigated risk, while capturing growth opportunities in various markets.
“This diversification is not just a defensive strategy but a proactive one, enabling the bank to maintain a balanced exposure profile, even in volatile market conditions,” says Al-Sager. “Growth across different customer segments — from large corporates to SMEs —demonstrates NBK’s adaptability and its ability to meet the evolving needs of its clients.”
At the heart of NBK’s long term success is its unwavering commitment to investing in human capital, recognising it as a driver of sustainable growth and innovation. By focusing on nurturing younger talent, NBK aims to build a pipeline of future leaders equipped with the expertise and vision to navigate an evolving financial landscape.
Skill initiatives like the NBK Academy and the NBK Tech Academy underscore the Group’s focus on cultivating a skilled workforce that drives innovation and maintains its competitive edge.
Weyay leads the way
NBK’s steadfast commitment to advancing its strategic agenda is also reflected in technology investments. The bank excels at digital innovation, consistently delivering transformative banking experiences that align with the evolving needs of its customers. The launch of Weyay, Kuwait’s first digital bank, exemplifies NBK’s pioneering spirit in setting new standards for the banking industry by offering seamless and innovative banking solutions.
Similarly, Boubyan Bank’s launch of Nomo, a digital Islamic bank, is an innovative approach to meeting the evolving needs of modern consumers, who require technological convenience in concert with Sharia compliance. Nomo leverages advanced digital technologies to provide a seamless banking experience, enabling customers to manage their finances according to Islamic principles on a user-friendly digital platform.
A green vision
NBK’s strong brand reputation is further demonstrated by its efforts to support clients in transitioning to greener business practices. “The bank collaborates closely with its customers, offering tailored financial solutions and advisory services that facilitate the shift towards sustainable operations,” says Al-Sager. “This commitment not only aligns with the global emphasis on sustainability but also reinforces NBK’s standing as a responsible and forward-looking financial institution.”
The Group has made environmental, social and governance principles the cornerstone of its operations and lending philosophy, weaving these elements seamlessly into its overarching business strategy.
This commitment, crystallised in the Group’s 2023 ESG strategy, is built upon several interrelated pillars, across governance, responsible banking, building on capabilities and helping local communities.
This reinforces NBK’s dedication to supporting its customer base while driving sustainable growth and adapting to emerging challenges. In the coming years, NBK’s priorities are firmly anchored in a visionary approach aimed at reinforcing its standing as the premier banking partner across all market segments, both within Kuwait and on the global stage.
KEY COMPANY DATA
First half of 2024
Total assets: $122.9bn
Net profit: $954mn
Capital adequacy ratio: 16.8%
Loan to deposit ratio: 92.1%