BusinessFeaturedKuwait News

Kuwait banks boost non-resident credit to 4.17 billion dinars by January-end

While net foreign assets surge 27% to 12.7 billion dinars by January 2024, deposits in foreign banks were recorded at 6.7 billion dinars

  • Deposits from non-residents in Kuwaiti banks amounted to approximately 9.1 billion dinars by the end of January 2024

  • Foreign bank loans hit 2.15 billion dinars; local banks’ foreign liabilities reach 12.38 billion

Data from the Central Bank of Kuwait showed that credit facilities provided by local banks to foreign (non-resident) customers in Kuwait witnessed an annual growth of 18.4%. By the end of January 2024, these facilities reached about 4.17 billion dinars, compared to 3.52 billion dinars in January 2023, reflecting a net growth of 649.3 million dinars.

These credit facilities, directed to foreigners who are not residents of the country, reflect great confidence in the Kuwaiti banking sector. The credit facilities for non-residents are divided into two categories: the first totaling four billion dinars, and the second denominated in dinars with a value of 105.7 million dinars. These data are monitored as part of the banks’ foreign assets.

At the local level, which encompasses the activity of local banks and their branches within the State of Kuwait, data from the Central Bank revealed that the total foreign assets of local banks amounted to 25.14 billion dinars at the end of January 2024. This figure represents an increase from 22.9 billion dinars in January 2023, indicating an annual growth rate of 9.7% and a net growth of 2.2 billion dinars.

The foreign assets of local banks include deposits with foreign banks, loans to foreign banks, credit facilities to non-residents, as well as foreign investments and other assets.

By the end of January 2024, deposits in foreign banks were recorded at 6.7 billion dinars, compared to 6.88 billion dinars at the end of January 2023, reflecting a slight decrease of 145.8 million dinars, equivalent to 2.6%.

Regarding loans to foreign banks, the amount stood at 2.15 billion dinars at the end of January 2024, showing an increase from 1.99 billion dinars in January 2023, representing an 8% increase.

In terms of foreign investments, they amounted to 10.5 billion dinars at the end of January last year, compared to 9.2 billion dinars in January of the previous year, marking an increase of 14.1% and a net rise of 1.28 billion dinars within one year.

Regarding other foreign assets owned by banks, they saw an increase from 1.45 billion dinars in January 2023 to 1.68 billion dinars at the end of January last year, representing an annual increase of 15.8% and a net increase of 225.5 million dinars.

In terms of foreign liabilities on local banks, Central Bank data indicate that they amounted to 12.38 billion dinars at the end of January last year, compared to 12.8 billion dinars, marking a decrease of 3.2%, equivalent to 442 million dinars.

Foreign liabilities are categorized into deposits from non-residents, loans from foreign banks, and other liabilities.

Deposits from non-residents amounted to approximately 9.1 billion dinars by the end of January 2024, and these deposits are divided into two categories. The first category consists of deposits from non-resident banks worth 4.99 billion dinars, while the second category is valued at 4.13 billion dinars.

Deposits from non-residents have experienced a decline from the level of 9.8 billion dinars in January 2023, resulting in a net decrease of 700 million dinars.

Meanwhile, loans from foreign banks amounted to 1.3 billion dinars by the end of January 2024, marking a 20% increase compared to 1.09 billion dinars in January 2023. Additionally, other liabilities were recorded at 1.9 billion dinars.

In total, net foreign assets amounted to 12.7 billion dinars at the end of January 2024, which is an increase of 27% compared to 10 billion dinars in January 2023.



Read Today's News TODAY...
on our Telegram Channel
click here to join and receive all the latest updates t.me/thetimeskuwait





Back to top button