Banks deposits near 58 billion dinars in eight months; assets up, reserves down

Deposits at local banks in Kuwait rose by KD 3.95 billion in the first eight months of 2025, reaching KD 57.76 billion in August compared with KD 53.82 billion in December 2024, according to Central Bank of Kuwait data.

This represents a growth of 7.3% since the beginning of the year and 3.3% year-on-year. On a monthly basis, deposits increased by 1.9%, or about KD 1.1 billion, in August.

The rise was largely driven by private deposits, which climbed by KD 3.03 billion, or 7.3%, to KD 44.66 billion. Public institutions’ deposits also rose sharply by 20.3%, adding KD 1.45 billion to reach KD 8.56 billion, while government deposits fell 10.6% to KD 4.54 billion compared with KD 5.08 billion at the end of last year.

Credit facilities showed an 8% rise, with loans totaling KD 61.7 billion by August compared with KD 57.17 billion in December 2024. Year-on-year, credit grew by 11.4%.

Housing loans rose by 3.2% to KD 17.07 billion, while real estate loans increased by 4.65% to KD 10.8 billion. Consumer loans dipped slightly to KD 2.06 billion. Loans for purchasing securities recorded one of the highest growth rates, jumping 18.5% to KD 4.49 billion.

By sector, construction loans expanded by 3.3% to KD 3.03 billion, industrial loans advanced by 3.9% to KD 2.85 billion, and oil and gas loans rose by 2.1% to KD 2.51 billion. Loans to banks themselves surged by 35.2% to KD 4.62 billion by May 2025.

Local banks’ total assets grew by 9% during the first eight months of 2025 to KD 99.92 billion, compared with KD 91.66 billion in December 2024. On an annual basis, assets rose by 12.7%. Conventional banks’ assets increased by 7.1% to KD 48.96 billion, while Islamic banks’ assets expanded by 10.9% to KD 50.95 billion.

Net foreign assets of local banks increased by 1.85% to KD 15.44 billion, while shareholders’ equity rose by 6.2% since the start of the year to KD 17 billion. However, equity fell 1.3% on a monthly basis compared with July.

In contrast, Kuwait’s official reserve assets declined by 10% year-on-year to KD 13.05 billion in August, down from KD 14.5 billion in August 2024.

This marked the lowest level since April 2020. The fall was mainly due to an 11.4% drop in foreign currency and deposits abroad, which stood at KD 11.41 billion.

Special Drawing Rights rose slightly to KD 1.33 billion, while Kuwait’s reserve position at the International Monetary Fund increased to KD 223.7 million in August, up 3.4% from a year earlier and stable on a monthly basis.

Follow The Times Kuwait on
X, Instagram and Facebook for the latest news updates