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Al Sager: NBK Not Only Overcomes Challenges — It Transforms Them into Opportunities for a Stronger, More Sustainable Future

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KUWAIT CITY, Apr 23: Mr. Isam Al-Sager, Vice Chairman and Group CEO of National Bank of Kuwait ‎‎(NBK), expressed unwavering confidence in the bank’s ability to swiftly adapt to the ‎evolving economic landscape, all while maintaining its leadership position in the local market.‎

On the sidelines of the analyst conference call for the first quarter of 2025, Al-Sager stated, ‎‎”We not only overcome these challenges, but we seize them as opportunities to build a ‎stronger and more sustainable future.” He emphasized that NBK continues to enhance its ‎flexibility, investment, and technology, all while maintaining a steadfast commitment to the ‎highest quality standards in addressing the evolving needs of its customers.‎

He highlighted that NBK’s regional and international presence remains a key factor in ‎mitigating risks, stabilizing revenue, and improving operational efficiency. He further stressed ‎that the Group’s ongoing goal is to drive value and profitability by strengthening the ‎integration of its businesses and expanding cross-selling opportunities across the various ‎markets in which it operates.‎

Al-Sager emphasized that the Group’s wealth management business will continue to leverage ‎its extensive experience in delivering a comprehensive approach to portfolio management, ‎advisory services, and investment opportunities. Meanwhile, its Islamic banking arm, ‎represented by Boubyan Bank, will further reinforce NBK’s distinctive position in the local ‎market and play a pivotal role in diversifying its sources of profitability.‎

He attributed the 8.5% year-on-year decrease in the bank’s net profit for the first three ‎months of 2025 primarily to the introduction of the new Domestic Minimum Top-up Tax ‎‎(DMTT), which took effect this quarter. This led to an increase in the effective tax rate to ‎‎16.3% in 1Q2025, compared to 9.2% in the corresponding period of 2024. He noted that, ‎excluding the impact of the new tax, pre-tax profit actually saw a 0.8% year-on-year increase, ‎reaching KD 173.4 million in the first quarter of 2025.‎

Al-Sager stated that the Group’s returns remained robust despite the impact of the new tax ‎system, with the return on average assets reaching 1.33% in the first quarter of 2025. ‎Meanwhile, the return on average shareholders’ equity stood at 13.1%. He also highlighted ‎that the Group’s loan portfolio is strategically allocated, with 70% originating from Kuwait ‎and 30% generated through its international presence.‎

‎“NBK reaffirms its unwavering commitment to sustainability and advancing its sustainable ‎financial agenda. The successful issuance of the first green bonds in 2024 stands as one of the ‎bank’s most significant achievements, attracting strong interest from international investors ‎and reaffirming the market’s confidence in our ESG strategy,” Al-Sager added.‎

He highlighted that the bank continues to make significant strides in integrating climate-‎related standards into its operations, with a particular focus on reducing the carbon footprint ‎of its investment portfolio and effectively managing climate risks. He noted that these efforts ‎align with leading international standards, strengthening NBK’s role as a key player in ‎supporting Kuwait’s commitment to achieving carbon neutrality, while also reflecting its ‎crucial role in driving the transition toward a low-emission economy.‎

Kuwait’s Economy

On the performance of the Kuwaiti economy, Al-Sager stated that despite the slowdown in ‎macroeconomic activity in 2024, the near-term growth outlook for 2025 remains optimistic. ‎He attributed this positive outlook to several key factors, including the anticipated easing of ‎voluntary production cuts by OPEC+, the gradual recovery of consumer spending, credit ‎growth, the resurgence of momentum in project market activities, and the potential ‎acceleration of public investment.‎

He explained that, supported by these factors, Kuwait’s GDP is expected to grow by 3.0% in ‎‎2025. ‎

Regarding the projects market, Al-Sager noted, “The market experienced some slowdown in ‎the first quarter of 2025, following a strong year of activity in 2024. The value of projects ‎awarded in the first quarter reached over KD 400 million. However, the outlook remains ‎promising, with projects in preparation estimated to exceed KD 10 billion, reflecting the ‎government’s strong commitment to advancing its development and reform agenda at an ‎accelerated pace”.‎

As for the short-term outlook for oil prices, Al-Sager remarked that as the government ‎continues to focus on implementing its development plan, oil price fluctuations have become ‎less impactful on capital spending. He explained that this type of spending now accounts for ‎less than 10% of the total government budget, reducing the likelihood of significant savings ‎should oil revenues face pressure. He also noted that the first two years of capital spending ‎will primarily focus on addressing infrastructure gaps, with the provision of basic services to ‎meet population growth remaining a key priority.‎

He stated that the recently approved Financing and Liquidity Law provides the government ‎with greater flexibility in managing its financial resources, enabling the issuance of debt ‎instruments worth up to KD 30 billion.‎

On the mortgage law, Al-Sager explained that several important meetings have recently been ‎held to approve the law, including discussions with the Public Authority for Population ‎Welfare to sign advisory service agreements with real estate developers. He indicated that the ‎law is expected to be approved due to its strategic importance, particularly given the more ‎than 100,000 pending housing applications and the growing population of Kuwaiti youth, ‎which adds approximately 10,000 new applications annually.‎

Furthermore, Al-Sager emphasized that the banking sector’s strong liquidity position ‎strengthens its ability to play a key role in addressing the housing problem in Kuwait.‎

The GCC & The Global Economy

Al-Sager pointed out that, supported by robust fiscal reserves, ambitious economic reform ‎programs, continued progress in major projects, and strong demand, the economies of the ‎GCC are expected to maintain relatively strong performance in 2025. However, he cautioned ‎that tightening global financial conditions could dampen investment and trade flows, increase ‎financing costs, and potentially lead to a decline in demand, along with volatile oil prices.‎

Regarding the global economy, Al-Sager noted that it has recently navigated a complex ‎environment marked by shifting monetary policies and escalating geopolitical tensions. He ‎pointed out that the recent trade war and tariffs imposed by the US administration have cast ‎a shadow over the economic landscape, potentially contributing to higher inflation rates and a ‎slowdown in growth, further deepening the uncertainty surrounding the global economic ‎outlook.‎

Robust Operational Performance

In the meantime, Mr. Sujit Ronghe, NBK Group Chief Financial Officer, stated that ‎despite the impact of the new tax regime, the Group maintained strong operating performance ‎in the first quarter of 2025, driven by significant growth in business activities, particularly in ‎lending and investment. He highlighted that the operating income mix remains well-balanced, ‎with non-interest income comprising 24% of total revenue sources.‎

Ronghe emphasized that NBK Group’s financial position remains robust, characterized by ‎high levels of credit quality, strong capitalization, and the bank’s ability to generate operating ‎profits that enhance its capacity to absorb credit losses. ‎

He further noted that the Group continues to leverage its unique advantage among Kuwaiti ‎banks, particularly through its broad geographical presence via a network of overseas ‎branches and subsidiaries, along with its ability to offer both conventional and Islamic ‎banking services.‎

He highlighted that operating income during the first quarter of 2025 was distributed across ‎key business segments, with overseas branches and subsidiaries contributing 26%, Islamic ‎banking 22%, consumer banking 20%, corporate banking 12%, and NBK Wealth 9%.‎

Ronghe further explained that overseas branches and subsidiaries accounted for 27% of the ‎Group’s net profit during the first quarter of 2025, while Islamic banking contributed 19%, ‎corporate banking 17%, consumer banking 16%, and NBK Wealth’s contribution reached ‎‎10%.‎

He also noted that IBG and Boubyan Bank collectively contributed 44% and 23%, ‎respectively, to the Group’s total assets, reinforcing the Group’s strategy of diversifying its ‎revenue sources.‎

Ronghe noted that the Group’s loans and advances saw impressive growth during the first ‎quarter of 2025, reaching KD 24.6 billion, reflecting a 9.9% increase compared to March ‎‎2024 and a 3.8% rise on a quarterly basis. This growth was driven by higher loan volumes in ‎both Kuwait and international markets, across conventional and Islamic banking services.‎

He further pointed out that, amidst the prevailing economic uncertainty, loan growth in 2025 ‎is expected to remain in the single-digit range. However, any improvement in global ‎conditions, a faster pace of project implementation, or the approval of the mortgage law in ‎Kuwait could significantly boost the growth of loan activities.‎

Regarding the recently implemented DMTT tax in Kuwait and its impact on the bank’s profits ‎for the current year, Ronghe stated: “The executive regulations of the law are expected to be ‎issued within six months of its adoption. In the absence of detailed regulations at this stage, ‎current estimates suggest that the effective tax rate for 2025 will range between 16% and ‎‎17% of pre-tax profits.‎

He pointed out that the net interest margin for the first quarter of 2025 was impacted, ‎reaching 2.45%, due to an unfavorable shift in the asset mix, along with the annual effect of ‎the depreciation of the Egyptian pound and the decline in historically high interest rates. ‎However, the recent approval of the Finance and Liquidity Law in Kuwait boosts ‎expectations for the upcoming issuance of sovereign debt instruments this year, which will ‎allow the bank to repurpose liquidity into interest-bearing assets.‎

He emphasized the bank’s capacity to provide the necessary financing for development ‎projects currently in the pipelines, supported by its diversified and stable financing base, ‎which aligns with NBK’s strategy for sustainable growth.‎

Regarding his outlook for the operating environment, Ronghe stated: “Despite the prevailing ‎uncertainty in the economic landscape, we remain cautiously optimistic that the overall ‎operating environment, although challenging, stabilize in due course during 2025”.‎

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Boursa Kuwait closes higher | arabtimes

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KUWAIT CITY, Sept 15: Boursa Kuwait ended Monday’s session on a positive note, with the All Share Index climbing 31.48 points, or 0.36 percent, to close at 8,816.31 points. Trading activity was robust, with 468.2 million shares exchanged across 27,716 transactions, generating a total value of KD 114.8 million (USD 349 million). The Main Market Index recorded the sharpest gains, adding 44.80 points, or 0.56 percent, to settle at 8,047.53 points. This performance came on the back of 272.4 million shares traded through 17,221 transactions, worth KD 49.3 million (USD 150 million). The Premier Market Index also advanced, rising 29.72 points, or 0.32 percent, to close at 9,443.71 points. It accounted for 195.8 million shares traded in 10,495 deals, valued at KD 65.4 million (USD 199 million). In contrast, the Main 50 Index slipped 21.17 points, or 0.26 percent, to settle at 8,230.24 points. A total of 203.5 million shares were traded through 10,970 transactions, amounting to KD 39.4 million (USD 120 million)(KUNA)

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Brazil’s Lula pushes back against tariff, tells Trump country’s democracy ‘is not on the table’

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TKMY103

Brazil’s President Luiz Inacio Lula da Silva gives a joint statement with Nigeria’s President Bola Tinubu, at Planalto presidential palace, in Brasilia, Brazil, on Aug 25. (AP)

BRASILIA, Brazil, Sept 15, (AP): Brazil’s President Luiz Inácio Lula da Silva on Sunday pushed back against a 50% tariff on Brazilian imported goods to the United States, arguing that it was “political” and “illogical.” Lula said in a New York Times op-ed that his government is open to negotiating anything that can bring mutual benefits. “But Brazil’s democracy and sovereignty are not on the table,” he said.

US President Donald Trump imposed the tariff on Brazil in July, citing what he called a “witch hunt” against former President Jair Bolsonaro, who at the time stood accused of trying to illegally hang onto power. The trial came to an end on Thursday after a panel of Supreme Court justices ruled that Bolsonaro had attempted a coup after his 2022 electoral defeat to Lula, sparking fears of further US measures against Brazil.

Lula said he was proud of the Supreme Court for its “historic decision” which safeguards Brazil’s institutions, the democratic rule of law and is not a “witch hunt.” “(The ruling) followed months of investigations that uncovered plans to assassinate me, the vice president and a Supreme Court justice,” Lula said. Lula added that the tariff increase was “not only misguided but illogical,” citing the surplus of $410 billion in bilateral trade in goods and services the US has accumulated over the past 15 years

. The op-ed is a sign that Brazil is bracing for more possible sanctions after the Supreme Court’s decision. After Thursday’s ruling, US Secretary of State Marco Rubio posted on X that Trump’s government “will respond accordingly.” Brazil’s Foreign Ministry called Rubio’s comments an inappropriate threat that wouldn’t intimidate the government, saying the country’s judiciary is independent and that Bolsonaro was granted due process.

Bolsonaro on Sunday briefly left his home in Brasilia where he is under house arrest to undergo a medical procedure at a nearby hospital, his first public appearance since Thursday’s ruling. Escorted by police, Bolsonaro went to the DF Star hospital in Brazil’s capital in the morning for procedures related to skin lesions – a temporary release granted by Justice Alexandre de Moraes on Sept. 8.   

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Kuwait celebrates OPEC’s 65 years of ensuring global energy cooperation and stability

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KUWAIT CITY, Sept 14: The Organization of Petroleum Exporting Countries (OPEC) marked its 65th anniversary Sunday, emphasizing the importance of stable markets and multilateral dialogue for the future.

OPEC was established between September 10-14, 1960, following intensive meetings in Baghdad, Iraq. The founding members included Kuwait, Saudi Arabia, Iraq, Iran, and Venezuela. Kuwait’s delegation was represented by Ahmad Sayed Omar, alongside Saudi Arabia’s Abdullah Al-Tariki, Iran’s Fuad Rouhani, Iraq’s Tala’at Al-Shaibani, and Venezuela’s Juan Pablo Perez Alfonzo.

According to OPEC, the organization was founded during a period of significant international economic and political transition, characterized by widespread decolonization and the emergence of many new independent states in the developing world.

At the time, the international oil market was dominated by the “Seven Sisters” multinational oil companies, which OPEC states deliberately spiked prices twice in 1959 and 1960, causing severe harm to oil-exporting countries. This manipulation was a catalyst for OPEC’s creation.

The founding meeting established a system to ensure price stability and guaranteed production, addressing the needs of both producers and consumers. It also aimed to enhance cooperation among member countries and unify policies as necessary, while allowing new members to join with approval from the original five founding states.

The OPEC agreement was officially registered with the United Nations Secretariat on November 6, 1962, in accordance with Article 102 of the UN Charter, which requires international agreements to be registered.

Initially, OPEC set up its headquarters in Geneva, Switzerland, in 1960 before moving to Vienna, Austria, in 1965. Qatar joined the organization in 1961, followed by Libya and Indonesia in 1962. Today, OPEC consists of 12 member countries.

Over seven decades, OPEC has maintained its principles and values, ensuring the stability of oil and energy markets. The organization is governed by a Board of Governors and an Economic Council—the former being the main executive body and the latter responsible for economic studies. Several committees oversee production monitoring, internal audits, and other functions.

In 1976, OPEC established the OPEC Fund for International Development, headquartered in Vienna, aimed at fostering cooperation between OPEC members and developing countries through financial assistance and loans.

Kuwait has played an integral role in OPEC activities, both within the organization and through agreements outside of it, such as the OPEC+ framework. In January 2022, OPEC members nominated Kuwaiti Dr. Haitham Al-Ghais as Secretary General for a three-year term beginning in August 2022. His mandate was renewed for an additional three years in August 2025, highlighting Kuwait’s prominent leadership within OPEC.

On Sunday, Kuwait’s Minister of Oil Tareq Al-Roumi said OPEC’s founding marked a historic turning point in the global energy sector. He noted Kuwait’s pivotal role from the outset in supporting OPEC’s policies and achieving its strategic objectives.

In a statement to Kuwait News Agency (KUNA), Al-Roumi described OPEC’s establishment as the start of a new phase for producing countries that affirmed sovereignty over natural resources and fostered a collective vision for national and economic development.

He said Kuwait was not only a founding member but also an active partner in establishing cooperation among producing countries and consolidating the principle of national sovereignty over resources to serve sustainable development.

Al-Roumi emphasized OPEC’s decades-long contributions to supporting member states’ local petroleum industries, maintaining oil market stability, and participating in international dialogue to enhance global energy security. He added that the organization continues to support the global economy and balance the interests of both producers and consumers through enlightened policies.

He highlighted the creation of the OPEC Fund for International Development in 1976 as a key step in expanding OPEC’s impact, aiding ambitious social and economic development programs in many countries. Kuwait has invested in this cooperation to bolster national projects and development initiatives, reflecting its leadership in sustainable development inside and outside the organization.

Al-Roumi noted OPEC’s major role in coordinating international negotiations related to the United Nations Framework Convention on Climate Change (UNFCCC), helping create a favorable environment through long-term forecasts and strategies promoting a comprehensive approach. This includes investing in various energy types and modern technologies while ensuring balance, gradualism, and social, economic, and environmental well-being.

Despite facing numerous challenges and geopolitical fluctuations throughout its history, OPEC’s well-planned strategies have maintained supply security and global market stability. The organization encourages investment across all energy types and adopts modern technologies, balancing economic, social, and environmental dimensions.

Al-Roumi pointed to the formation of the OPEC Plus alliance at the end of 2016 as a pivotal milestone, which helped stabilize oil supplies during the COVID-19 pandemic. Kuwait played an active role in supporting collective coordination policies that led to the largest and longest voluntary production adjustments in oil market history. These efforts received international acclaim and strengthened confidence in OPEC’s policies.

He affirmed Kuwait’s continued support for OPEC’s strategic role in the global energy system, stressing that the organization remains a cornerstone in balancing growing energy demand, environmental sustainability, and social and economic well-being. This reflects the responsibility of producing countries toward their peoples and the world.

“Today we celebrate the 65th anniversary of OPEC’s founding,” Al-Roumi said. “We are confident that Kuwait, with its continued leadership role, will remain, under the guidance of His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, His Highness the Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah, may God protect and preserve them, and His Highness the Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, may God protect him, an effective partner in strengthening cooperation between producing countries and providing a model to be emulated in adhering to responsible oil policies that ensure market stability and energy sustainability for future generations.”

OPEC marks 65th anniversary, highlights commitment to market stability and multilateral dialogue.

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