Kuwaiti bank deposits reach 56 bln dinars despite monthly dip; private sector leads growth

Deposits in local Kuwaiti banks grew by 4.02%, or 2.16 billion dinars, in the first five months of 2025, reaching 55.98 billion dinars by the end of May, compared to 53.82 billion dinars at the end of December 2024.

However, on a monthly basis, deposits fell slightly by 0.43%, or 245 million dinars, compared to 56.23 billion dinars in April. Year-on-year, deposits were up 5.55% from 53.04 billion dinars recorded in May 2024.

This overall increase was driven primarily by a 5.06% rise in private sector deposits, which added 2.1 billion dinars, bringing the total to 43.715 billion dinars by the end of May. On a monthly basis, private sector deposits rose by 0.5% (217.5 million), and on an annual basis by 6.4% (2.624 billion). Deposits in foreign currencies by the private sector also jumped 21%, or 840.7 million dinars, to reach 4.84 billion dinars.

On the other hand, government deposits declined by 11.8%, or 604.2 million dinars, during the first five months, settling at 4.478 billion dinars, down from 5.08 billion dinars in December. In contrast, public institution deposits increased by 15.8%, or 1.125 billion dinars, to 8.257 billion dinars at the end of May.

Credit activity showed healthy growth, with total loans issued to residents and non-residents rising by 1.897 billion dinars, or 3.3%, to 59.06 billion dinars by the end of May, up from 57.169 billion dinars in December.

On an annual basis, loans surged by 6.8%, or 3.769 billion dinars, compared to 55.297 billion dinars in May 2024. However, consumer loans declined by 0.9% (19 million dinars), while housing loans increased by 1.6% (265.6 million dinars). Private and typical housing loans dropped 7.07%, while personal facilities rose 1.22% to 19.557 billion dinars.

Loans for purchasing securities saw a significant increase of 9.6%, or 366.6 million dinars, reaching 4.16 billion dinars, compared to 3.796 billion dinars in December. On an annual basis, these loans jumped by 19.3%. Real estate loans grew by 3.33% (344.3 million) to 10.66 billion dinars, while construction loans rose by 1.5% (43.3 million dinars). Industrial loans increased by 2.24% (61.6 million dinars), whereas loans to the oil and gas sector slightly declined by 0.3%. Bank loans also dropped by 3.75% (128.3 million dinars) during the same period.

The total assets of local banks grew by 4.63% (4.63 billion dinars) since the beginning of 2025, reaching 95.901 billion dinars by May’s end, compared to 91.65 billion dinars in December. On an annual basis, assets increased by 8.5%, or 7.489 billion dinars, from 88.412 billion dinars in May 2024. This growth was driven by a 6.6% increase in foreign assets, which reached 29.76 billion dinars, constituting 31.03% of total bank assets.

Shareholders’ equity in local banks rose by 6.8%, or 1.085 billion dinars, to 17.07 billion dinars at the end of May, compared to 15.994 billion dinars in December. The equity value also increased 7.3% year-on-year and 3.3% month-on-month from 16.51 billion in April. Meanwhile, domestic liquidity (Money Supply 2) grew by 4.18% year-on-year to 41.79 billion dinars, although it dropped 0.29% from 41.91 billion dinars in April.

Kuwait’s official reserve assets fell by 3.32% in May 2025 to 14.11 billion dinars ($46.19 billion) — the lowest since February — down from 14.59 billion dinars ($47.76 billion) in May 2024. On a monthly basis, reserves also declined 3.5%, but rose 3.07% compared to the end of 2024. Foreign currency and deposits abroad dropped 3.78% year-on-year and 4.07% month-on-month, totaling 12.49 billion dinars.

In contrast, Special Drawing Rights (SDRs) increased by 1.07% to 1.33 billion dinars, and the reserve position at the IMF stood at 208.1 million dinars, reflecting a 3.52% year-on-year decrease, but a 1.46% rise compared to April. These indicators reflect ongoing shifts in Kuwait’s monetary and fiscal positioning amid global economic uncertainties.