(MENAFN - Daily News Egypt) The National Bank of Kuwait (NBK) is the most important branch of the NBK Group as it plays a pivotal role in the group's strategy to diversify its revenues by increasing the contribution of international operations to net profits, said Isam Jassim Al-Sager, NBK's Group Chief Executive Officer and NBK-Egypt Chairman.
Al-Sager said in a statement on the results of the bank's operations in Egypt that NBK-Egypt contributes about one third of the profits of the group's foreign branches, which confirms the group's vision for long-term investment in the Egyptian market.
The results of the bank's operations revealed Wednesday that the bank posted a net profit of EGP 510m at the end of the first quarter (Q1) of 2019, compared to EGP 497m in Q1 of 2018, a growth of 2.6% year-over-year (y-o-y).
The bank's total assets grew by 18.25% to EGP 70.37bn at the end of March 2019, compared with EGP 59.51bn in March 2018.
Total customer deposits during this period increased by 20.56% to EGP 53.07bn compared to EGP 44.02bn. Net customer loans and facilities increased by 5.34% to EGP 37.68bn compared to EGP 35.77bn.
According to Al-Sager, the financial results achieved by NBK-Egypt and the growth in its profits and all its financial indicators reinforce the confidence of the group in the Egyptian market, especially as the bank's profits are mostly operational, reflecting the improved business environment and the stability of the economic situation in Egypt.
He explained that NBK-Egypt is aiming to acquire a greater market share in the retail sector in light of the rapid growth witnessed by the sector, by focusing on providing excellent banking services while simultaneously establishing the leading position in the corporate sector. In addition to focusing on small and medium-sized enterprises (SMEs) financing, ensuring the diversification of the bank's credit portfolio.
The NBK Group is working to transfer its expertise in the field of financial technology to the Egyptian market, through NBK-Egypt, as part of the group's strategy for digital transformation.
He stressed that the bank continues to maintain its strong performance, achieving growth in all its financial indicators, supported by the bank's success in overcoming unfavourable market conditions earlier this year.
"The bank's prudent policy as a member of the NBK Group is a result of its business model, which is based on maintaining diversification and balancing of sources of income and loan portfolio, offering more flexible financing solutions and introducing innovative banking products that meet the needs of actual customers and are based on in-depth studies of the market, as well as the bank's strong financial position, strong budget, successful strategy, and the wealth of the bank's team, which has extensive banking expertise," Al-Sager said.
He added that most of NBK-Egypt's profits come from credit operations with the corporate sector. The bank's credit portfolio includes a wide variety of companies, which reflects the diversification of the Egyptian economy, pointing out that the bank seeks to strengthen its position in the sector in the coming period, and that it has taken very good steps in this regard by providing advanced products and services to individuals which suit the requirements of various customer segments.
He said that the bank now has a network of banking branches of 50 branches spread over the best locations in the different governorates and cities of Egypt: Cairo, Giza, Alexandria, Delta, Sinai, the Red Sea, and the industrial zones in the Sixth of October and the 10th of Ramadan City.
It is also one of the few banks in the Egyptian market that has an Islamic license besides traditional licensing. It has two Islamic branches, one in Cairo and the other in Alexandria, which allows the bank to offer Sharia-compliant products in addition to traditional products.
The bank also has a large network of ATMs in the most important regions of the republic, as well as a number of electronic services, which the bank is moving to strongly expand and push many investments in this area to offer its customers unique banking experiences which would allow them to complete many of their banking transactions wherever they are, and whenever they want, without having to go to the bank for every transaction.