Kuwait bank deposits rise to 61.9 billion dinars
. . . as zero-interest deposits lead growth
- Private sector deposits increase by 619.8 million dinars in the first five months of 2026, while non-interest deposits reach 10.52 billion dinars, accounting for the largest share of dinar deposits
- The deposit growth reflects continued expansion in Kuwait’s banking sector, supported by increases across private sector, government and institutional deposits during the first half of 2026.
Deposits in Kuwaiti banks recorded strong growth during the first five months of 2026, with total deposits rising by 4.6 percent to reach 61.89 billion dinars by the end of May, according to data from the Central Bank of Kuwait.
The increase represents growth of 2.73 billion dinars compared with 59.15 billion dinars at the end of December 2025. On an annual basis, total bank deposits increased by 10.5 percent compared with 55.98 billion dinars recorded in May 2025.
Non-interest deposits recorded the strongest position among private sector dinar deposits, rising by 3.6 percent, or 367 million dinars, during the first five months of the year to reach 10.523 billion dinars by the end of May.
These deposits accounted for around 25.1 percent of total private sector deposits in Kuwaiti dinars held by residents and non-residents, which stood at 41.916 billion dinars after increasing by 1.6 percent, or 662.8 million dinars.
Private Sector Deposits Continue Growth
Central Bank data showed that total private sector deposits, including those held in dinars and foreign currencies, increased by 1.37 percent during the January-May period, adding 619.8 million dinars to reach 45.787 billion dinars compared with 45.167 billion dinars at the end of December.
Compared with May 2025, private sector deposits increased by 4.65 percent, or 2.03 billion dinars, from 43.74 billion dinars.
Foreign currency deposits also recorded growth, rising by 2 percent, or 124.5 million dinars, to 6.241 billion dinars compared with 6.117 billion dinars at the end of 2025. On an annual basis, foreign currency deposits increased by 28.7 percent, adding 1.392 billion dinars compared with 4.848 billion dinars in May 2025.
Demand deposits grew by 4.11 percent, or 382.8 million dinars, reaching 9.676 billion dinars, while savings deposits increased by 3.22 percent, or 187.2 million dinars, to 6 billion dinars.
Interest-Bearing Deposits Show Varied Trends
The Central Bank data showed that deposits in Kuwait’s banking sector are distributed across around 11 interest-rate categories, with five categories accounting for nearly 89 percent of total deposits, valued at approximately 37.32 billion dinars.
Deposits offering interest rates between 4 and 4.5 percent ranked second, representing 18.8 percent of total deposits with a value of 7.877 billion dinars.
Deposits with interest rates between 3 and 3.5 percent ranked third, accounting for 16.3 percent of deposits at 6.82 billion dinars. This category recorded the highest growth since the beginning of the year, increasing by 23.7 percent.
Deposits offering interest rates of up to 2 percent ranked fourth, with a share of 16.1 percent and a value of 6.77 billion dinars.
Deposits with interest rates between 3.5 and 4 percent ranked fifth, representing 12.7 percent of total deposits at 5.324 billion dinars, despite declining by 8 percent.
Other deposit categories included deposits between 2.5 and 3 percent, which reached 2.729 billion dinars after growing by 17 percent, and deposits between 4.5 and 5 percent, which stood at 1.685 billion dinars despite declining by 15.5 percent.
Government Deposits Drive Overall Increase
The rise in total bank deposits was also supported by significant growth in government deposits, which increased by 35 percent during the first five months of 2026.
Government deposits rose by 1.463 billion dinars to reach 5.643 billion dinars compared with 4.18 billion dinars at the end of December.
Deposits from public financial and non-financial institutions also increased by 6.6 percent, adding 651.5 million dinars to reach 10.46 billion dinars compared with 9.809 billion dinars at the end of 2025.
Key Deposit Indicators
- Total bank deposits reached 61.89 billion dinars, up 4.6 percent since the start of 2026.
- Private sector deposits reached 45.787 billion dinars.
- Non-interest deposits increased to 10.523 billion dinars.
- Foreign currency deposits rose to 6.241 billion dinars.
- Demand deposits increased to 9.676 billion dinars.
- Savings deposits climbed to 6 billion dinars.
The deposit growth reflects continued expansion in Kuwait’s banking sector, supported by increases across private sector, government and institutional deposits during the first half of 2026.
