Kuwait’s exchange companies posted a sharp rise in profitability during the first half of 2026, with net profits more than doubling on the back of strong growth in currency trading revenues, according to data released by the Central Bank of Kuwait.
The combined net profit of the country’s 31 exchange companies rose by 110.5 percent to 31.48 million dinars during the January-June period, compared with 14.95 million dinars in the corresponding period of 2025, reflecting an increase of 16.52 million dinars.
The sector’s total revenues climbed 43.3 percent to 66.57 million dinars, up from 46.46 million dinars a year earlier. The growth was largely driven by currency sales, which generated 60.14 million dinars, accounting for more than 90 percent of total revenues. Income from currency sales increased by 51.2 percent compared with the same period last year.
Bank interest income also recorded an increase of 26.2 percent to 553,300 dinars, while other income edged down 5.8 percent to 5.87 million dinars.
Despite higher operating costs, exchange companies maintained strong earnings growth. Total expenses rose 11.3 percent to 35.08 million dinars, with administrative and banking expenses accounting for the largest share at 29.33 million dinars, representing nearly 84 percent of total operating costs. Bank interest expenses also increased by 15 percent during the period.
Meanwhile, provisions set aside by exchange companies declined slightly by 1.4 percent to 4.52 million dinars, reflecting stable risk levels, while other expenses registered a notable decrease.
The sector also strengthened its financial position during the first half of the year. Total assets increased by 11.9 percent to 343.5 million dinars by the end of June, compared with 306.9 million dinars at the end of December 2025.
The increase was primarily driven by a sharp rise in claims on financial institutions, which surged nearly 88 percent to 116.1 million dinars. Accounts receivable and other assets also recorded moderate growth.
On the other hand, foreign assets declined to 91.7 million dinars, while cash holdings, fixed assets, and financial and real estate investments also registered decreases during the six-month period.
The latest figures underscore the continued recovery and resilience of Kuwait’s exchange sector, supported by increased demand for foreign currency transactions and stronger business activity during the first half of 2026.
