Kuwait sees 3.34 billion dinars in depositor transfers for January

• Deposits with interest rates of up to 2% saw the largest decline in their balances, amounting to 2.7 billion dinars

• In January, deposits with interest rates between 4 and 4.5% surged by 33.6%, totaling 1.82 billion dinars, reaching 7.25 billion dinars by month-end

Data issued from the Central Bank of Kuwait indicates that depositors transferred deposits totaling 3.34 billion dinars in January alone, raising the total deposits of residents and non-residents in the banking system to 37.6 billion dinars.

Figures for private sector deposits denominated in Kuwaiti dinars, both for residents and non-residents and based on interest rates within the local banking sector (including local banks and their branches within Kuwait), reveal a significant trend in January.

Deposits with interest rates ranging from greater than 3.5% to 5% experienced a notable surge, attracting approximately 3.3 billion dinars to their balances. Conversely, deposits with interest rates of up to 2% saw the largest decline in their balances, amounting to 2.7 billion dinars.

Regarding the deposits that saw an increase in value in January, the most notable were those with interest rates ranging from greater than 4 to 4.5%, which surged by 33.6%, totaling 1.82 billion dinars within a month, reaching 7.25 billion dinars by the end of January, compared to 5.42 billion dinars in the preceding month of December.

Following closely were deposits with interest rates ranging from greater than 4.5 to 5%, which rose by 23.7%, amounting to 1.18 billion dinars, reaching 6.17 billion dinars by the end of January, compared to 4.99 billion dinars at the end of December.

Third were deposits with interest rates between 3.5% and 4%, which increased by 6.5%, reaching 321.5 million dinars, totaling 5.2 billion dinars by the end of January, compared to 4.9 billion dinars in December 2023.

Fourthly, deposits with interest rates between 3% and 3.5% increased by 8.6%, reaching 9.8 million dinars, totaling 123.2 million dinars by the end of January 2024, compared to 113.4 million dinars at the end of December.

Fifth were deposits with interest rates between 2% and 2.5%, which increased by 5.14%, reaching 1.8 million dinars, totaling 36.8 million dinars by the end of January, compared to 35 million dinars at the end of December 2023.

Deposits declined in value

In terms of deposits moving to higher segments or expiring, those with interest rates up to 2% saw the most significant decline, dropping by 28% to 2.7 billion dinars. They totaled 6.9 billion dinars by the end of January, down from 9.63 billion dinars at the end of December.

Deposits offering interest rates greater than 5 to 5.5% ranked second, experiencing a 16.6% decline in value to 315.4 million dinars. They reached 1.58 billion dinars by the end of January 2024, down from 1.89 billion dinars at the end of December.

Third were deposits offering interest rates greater than 5.5 to 6%, which decreased by 36.9%, amounting to 190.3 million dinars. They reached 324.6 million dinars at the end of January, down from 514.9 million dinars in December 2023.

Fourth were demand deposits, which saw withdrawals totaling about 130.6 million dinars, representing 1.3% of their value in December. They decreased from 10 billion dinars to 9.87 billion dinars by the end of January.

In fifth place were deposits with interest rates greater than 2.5 to 3%, which experienced a decline of 50.89%, totaling 85.5 million dinars. They reached 82.5 million dinars by the end of January, compared to 168 million dinars at the end of 2023.

Sixth, there were deposits with interest rates greater than 6%, which experienced a decline of 16.7%, totaling 6.1 million dinars. They reached 30.4 million dinars by the end of last January, compared to 36.5 million dinars at the end of December 2023.