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MENA

NATIONAL BANK OF KUWAIT: 9M 17: growth & risk cost trends yet to improve

    Rahul Shah
    Rahul Shah

    Head of Financials Equity Research

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    Tellimer Research
    10 October 2017
    Published byTellimer Research
    Key pieces still missing from the investment case. NBK’s results were in line with our expectations. Revenues were stronger than expected, helped by a higher net interest margin (better asset yields). However, at 119bp, credit risk costs remain stubbornly high. Despite reassuring commentary from management, credit growth remains weak. At 1.9x 2017f TBVPS and 14.5x earnings, we think the shares are fairly priced.