Deputy CEO of NBK- Kuwait, in an interview with Global Finance Magazine

• We will continue to invest in digital platforms that support growth in key areas
• NBK made tremendous investments in developing and upgrading IT infrastructure
• Our strategy in 2021 will continue to focus on consolidating our footprint in the international markets
• The Kuwaiti banking sector played a instrumental role in the recovery from the coronavirus crisis 

Mr. Sulaiman Al-Marzouq, Deputy CEO of National Bank of Kuwait - Kuwait said: "The year 2020 was a very challenging year, however, NBK clearly demonstrated that it is stands on solid grounds in the face of the fallout of the coronavirus pandemic.”

In an interview with Global Finance magazine, Al-Marzouq added: “The challenge was even doubled due to the sharp fall in oil prices combined with the outbreak of COVID-19 pandemic, and the subsequent measures taken by governments to contain the spread of the virus, including partial and full lockdown, severely weakening operating environment, diminishing financing opportunities, and impairing main income streams.”

At NBK, since the early beginning of the crisis, we activated emergency plans to ensure business continuity and took all necessary measures to protect both our employees and our customers, he pointed out.

Al-Marzouq noted that during the year 2020, the bank significantly reinforced its capital and liquidity ratios through two issuances of subordinated tier 2 bonds: one worth KD 150 million, and the other US$ 300 million, which both saw record subscription, reflecting the bank’s strong credit position locally and internationally, despite these challenging times. 

Digital Transformation Strategy

The Deputy CEO of NBK – Kuwait mentioned that over the past years, NBK increased its investments in IT infrastructure and digital transformation strategy, which provided it with more dynamic data, and  it showed proactive examples in anticipating the trends and levels of customer satisfaction.

Al-Marzouq added that the bank's digital channels provided effective and practical alternatives for branches, giving the bank a resilient operating model that is capable of changing the way it operates and adapting to the exceptional circumstances imposed by the pandemic, noting that NBK Mobile Banking App emerged as the bank’s largest branch and key digital channel, with the number of app users increasing by 38% during 2020, and the number of mobile-based transactions boosting by 51%, compared to last year.

For 2021, Al-Marzouq stated that NBK is looking forward to continue building and investing in technology and digital platforms that simplify operations and support growth in key areas such as wealth management and banking transactions, with a view to keep pace with our growing aspirations, the fact that makes us well-positioned to continue to be a source of strength for all our stakeholders.

NBK has made tremendous investments in the selective development and implementation of the most advanced automation solutions, upgrading IT infrastructure, and ensuring the resilience and capabilities of cybersecurity, he noted.

He also highlighted that NBK focuses on directing its investments to technologies that improve the efficiency and effectiveness of back office operations in the long term, as well as investing heavily in robotic process automation and focusing on improving efficiency in terms of saving time and costs.

International Markets

Al-Marzouq stressed that in 2021, NBK will carry on its strategy aimed to strengthen its footprint in the markets in which it operates, by striving to expand in the Egyptian and Saudi markets as well as to consolidate its position as a leading regional player in the area of wealth management.

Al-Marzouq said: “We hope that the Kuwaiti economy will restore the momentum in the new year, and we are also optimistic about Kuwait's ability to recover rapidly, despite the challenges and uncertainty surrounding the business environment, as social distancing and tight restrictions on movement continue to limit the extent and pace of economic recovery.”

There is a set of factors that would help the Kuwaiti economy restore the momentum, including recovery of the economic growth from the current low levels, in addition to restoring pre-pandemic government spending levels, and stability of oil prices, which would promote investors’ confidence, and finally, that the pandemic crisis comes to an end, and normal activities are resumed across different economic sectors, with the rollout of the vaccine worldwide, which should be made on fair basis, including  poor countries, in order to avoid a setback to square one, he affirmed.

Well-positioned for Recovery

Al-Marzouq said that NBK will be the biggest beneficiary from the recovery, thanks to its competitive edges that ensure faster growth than other banks under natural circumstances. These edges mainly include our excellence as a provider of digital banking, locally and regionally, in addition to well-diversified income sources, geographically and sectorally, thanks to our broad geographical footprint, dominant local market share, provision of both conventional and Islamic banking (through Boubyan Bank), the Group’s Islamic banking arm, as well as investment services through NBK Capital.

NBK will also be at the forefront of beneficiaries from the expected momentum of government investment spending with economic recovery, and accelerated pace of project implementation to make up for the disruptions during the lockdown, as we are the largest financier of government projects with a share exceeding 30% of the trade finance market, and NBK is the bank of choice for foreign companies engaged in these projects, being the “house bank” for about 75% of them, he noted.

Quick Response

Al-Marzouq stated that Kuwait was one of the first countries to take various measures to contain the spread of the virus though quick decisions, including partial and full lockdown.

He also mentioned that the Central Bank of Kuwait showed an early and quick response, which aimed to maintain monetary and financial stability and stimulate the economy, including cutting the discount rate to a historic low of 1.5%, with the aim of reducing the cost of funds for all economic sectors to create an environment promoting economic growth.

Al-Marzouq stressed that the Kuwaiti banking sector played an instrumental role in supporting the private and public sectors, acting as a pivotal part in the recovery from this crisis. This was the fruit of the conservative strategy and measures adopted by the Central Bank of Kuwait over the past years, which gave the sector more strength, making it one of the main drivers of recovery from this crisis, given that Kuwaiti banks are well capitalized, with an exceptionally strong balance sheet in terms of liquidity and asset quality.

-Ends-

© Press Release 2021