Tuesday, May 21, 2024

NBK’s 2024 AGM Approves All Board Proposals: A Look into its Financial Stability, Strategic Diversification, Societal Contributions and Future Plans

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NBK’s AGM Approves All Motions Proposed by the Board of Directors

In a significant gathering held on Saturday, March 23, 2024, the National Bank of Kuwait (NBK) conducted its Annual General Meeting (AGM) with an impressive quorum of 71.87%. The AGM witnessed the unanimous approval of the Board of Directors’ recommendations, including a notable 25% cash dividend distribution (25 fils per share) for the second half of the financial year. This decision elevates the total cash dividend payout for the year to 35%, accompanied by the issuance of 5% bonus shares, equating to 5 shares for every 100 shares owned by shareholders.

Consistent Progress

In his address to the attendees, Mr. Hamad Al-Bahar, NBK Group Chairman, underscored the bank’s strong financial outcomes in 2023, attesting to NBK’s robust business model and financial stability. These achievements, consistent with the bank’s commitment to sustainable growth and shareholder returns, have been recognized with several prestigious awards, reflecting NBK’s leadership and excellence domestically and globally.

Al-Bahar elaborated on the bank’s strategic diversification, emphasizing its key role in mitigating risks and maximizing opportunities. He assured stakeholders of NBK’s commitment to strategic goals and optimistic future outlook, supported by a solid balance sheet and capital foundation.

Highlighting the bank’s societal contributions, Al-Bahar pointed out NBK’s leadership in social responsibility, with over KD 28 million donated across various sectors, strengthening the bank’s role in community building and environmental sustainability.

Expanding our Footprint

For the upcoming year, Al-Bahar outlined strategic intentions to consolidate NBK’s presence in Kuwait and the GCC, alongside plans to introduce digital banking solutions and expand in the MENA region, further enhancing NBK’s market dominance.

Unwavering commitment

The Chairman emphasized NBK’s adherence to the highest ethical standards and governance principles, highlighting the bank’s dynamic governance framework promoting transparency and ethical conduct.

Historical Earnings

Mr. Isam J. Al-Sager, NBK Group Vice Chairman and CEO, reported an unprecedented annual profit in 2023, supported by the bank’s diversified business model and strategic resilience. Despite geopolitical tensions, NBK achieved a record profit of KD 560.6 million, a 10.1% increase from the previous year, with a substantial rise in operating profit to KD 1.2 billion (15.6% increase).

Al-Sager celebrated the bank’s remarkable growth across all fronts, particularly in international operations and wealth management, backed by Boubyan Bank’s contribution to NBK’s competitive advantage in the local market.

Challenges and Opportunities

Al-Sager acknowledged the challenges faced in 2023, mirroring global experiences, but highlighted several opportunities that contributed to a favorable economic climate in Kuwait. He attributed the bank’s notable achievements to strategic geographic expansion, digital transformation, and a robust financial standing.

A Sustainable Future

Al-Sager detailed NBK’s advancements in sustainability through the adoption of an ESG framework and initiatives aiming at achieving carbon neutrality. NBK’s commitment to sustainable banking and social responsibility was further evidenced by substantial contributions and initiatives positively impacting the community and environment.

Focus on Profitability

As 2024 unfolds, NBK remains steadfast in its commitment to profitability, capital resilience, and sustainable growth, prepared to navigate continuing challenges while seizing opportunities for innovation and expansion.

Revolutionary Change and Digital Offerings

Ms. Shaikha K. Al-Bahar, NBK Deputy Group CEO, shared insights into the bank’s digital advancements and customer-centric strategies which significantly propelled business growth. She highlighted the importance of international banking and wealth management in enhancing NBK’s market presence and profitability.

Al-Bahar further elaborated on NBK’s innovative digital offerings, aiming to revolutionize customer banking experience through enhanced services and products, notably the NBK Mobile Banking App.

Leadership Centre and Renewed Momentum

Mr. Salah Y. Al-Fulaij, Chief Executive Officer – Kuwait, spotlighted strategic initiatives bolstering NBK’s leadership role and customer loyalty. He emphasized the bank’s focus on technological advancement and innovation, underlining the significance of customer-centric strategies in maintaining NBK’s industry leadership.

Key Pillar

Al-Fulaij highlighted the crucial role of human capital in achieving the bank’s objectives, with substantial investments in employee development fostering a culture of performance, innovation, and competitiveness. He commended the bank’s workforce for their cornerstone contribution to NBK’s success.

Acknowledgment

In closing, Al-Bahar expressed gratitude to all stakeholders for their steadfast support, underscoring the collective effort that drove the bank’s accomplishments in 2023. He reaffirmed NBK’s dedication to delivering value to its customers, shareholders, and the wider community, reinforcing the bank’s leading position in Kuwait’s banking sector.

Jordan Clark
Jordan Clarkhttps://www.businessorbital.com/
Jordan Clark brings a dynamic and investigative approach to business reporting. Holding a degree in Business Administration and a certification in Data Analysis, Jordan has an eye for detail and a knack for uncovering the stories behind the numbers. His career began in the bustling world of Silicon Valley startups, giving him firsthand experience in tech entrepreneurship and venture capital. Jordan's reports often focus on technology's impact on business, startup culture, and emerging

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