National Bank of Kuwait earnings hit by corporate tax

Earnings of the National Bank of Kuwait (NBK), the Gulf state’s largest financial institution, fell 9 percent year on year in the first quarter following the imposition of 15 percent corporate tax from January.

Net profit fell to KD134 million ($435 million) from January to March, compared to KD147 million a year ago, the lender said in a statement.

Total assets grew by 9 percent to KD42 billion ($137bn), while customer loans and advances increased by 10 percent to KD25 billion by the end of the first quarter.

Customer deposits grew by 6 percent to KD24 billion by the end of March 2025.  

Net operating income rose nearly 1 percent to KD31 million, supported by growth in international banking and Boubyan Bank, its Islamic banking arm, said vice chairman and CEO Isam Al-Sager.

He said several indicators suggest a positive shift in the operational landscape for Kuwait in 2025.

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“At the forefront is the continued momentum in awarding and implementing projects,” he said, adding that the government is prioritising development projects with Vision 2035.

Challenges posed by US tariffs, concerns over a potential global trade war, and ongoing geopolitical tensions remain among the most significant uncertainties facing the markets in the near term, Al-Sager said.