NBK profit falls 5% after corporate tax impact

Net profit of the National Bank of Kuwait (NBK), the Gulf state’s largest financial institution, fell 5 percent year on year in 2025 following the introduction of 15 percent corporate tax last year.

The bottom line declined to KD576 million ($1.9 million) in 2025, compared with KD600 million a year ago, the lender said in a statement.

Total assets rose by 13 percent to KD46 billion, while customer loans and advances increased by 13 percent to KD27 billion by the end of December.

Customer deposits climbed by 14 percent to KD26 billion by the end of 2025.  

The board proposed a cash dividend of 35 fils per share for 2025, equivalent to 53 percent of net profits. It also recommended distributing bonus shares. However, the dividend and bonus shares are subject to shareholders’ approval.

Net operating income rose nearly 4 percent to KD1.3 billion, led by core banking activities, despite the volatile global operating environment and its spillover effects on regional and local markets, said vice chairman and CEO Isam Al-Sager.

He expected an improvement in the domestic operating environment in 2026, supported by several key factors, including the Financing and Liquidity Law 2025, which will enhance the banking system’s liquidity by leveraging high-quality sovereign assets and supporting the financing of large-scale projects. 

Al-Sager said that the Real Estate Financing Law, once approved, will enable banks to provide long-term financing for the residential sector, addressing the housing challenge and stimulating activity across the construction and real estate sectors.

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