Kuwaiti banks deposits rise by 1.3 billion in Q1 2025, driven by private sector growth

Data from the Central Bank of Kuwait revealed that total deposits in Kuwaiti banks increased by 2.4% (1.306 billion dinars) in the first quarter of 2025, reaching 55.129 billion dinars, up from 53.823 billion dinars at the end of December 2024.

On a monthly basis, deposits grew by 0.5% in March compared to 54.8 billion dinars in February. Year-on-year, deposits increased 4%, compared to March 2024’s figure of 53 billion dinars, according to Al-Rai daily.

The growth was primarily fueled by a 2.5% rise in private sector deposits in Kuwaiti dinars, which climbed by 1.043 billion dinars, bringing the total to 42.528 billion dinars — up from 41.48 billion dinars at the end of December. These deposits also increased 1% month-on-month in March, equivalent to 450.5 million dinars, and rose 4.86% annually, adding 1.97 billion dinars over the year.

Private sector foreign currency deposits also recorded a 2.67% increase in March (103.9 million dinars), bringing the total to 3.988 billion dinars, up from 3.884 billion dinars in December.

In contrast, government deposits declined by 2.6% (132.1 million dinars) to 4.951 billion dinars, down from 5.08 billion dinars in December. However, deposits from public financial and non-financial institutions rose 5.45% in Q1, adding 395.5 million dinars to reach 7.65 billion dinars.

Loan Growth Accelerates Across Most Sectors

Total loans granted in the first three months of 2025 reached approximately 815.5 million dinars, raising the credit balance to 57.991 billion dinars, compared to 57.176 billion dinars at the end of December.

This reflects a 1.3% monthly increase and a 6.65% annual growth, or 3.62 billion dinars compared to March 2024’s 54.371 billion dinars.

• Consumer loans fell by 1.23% (25.5 million dinars) to 2.046 billion dinars
• Housing loans increased by 0.6% (101.3 million dinars) to 16.647 billion dinars.
• Private and model housing loans declined by 5.4% (13.3 million dinars) to 231.4 million dinars.
• As a result, total personal facilities rose 0.4% to 19.404 billion dinars, up from 19.321 billion dinars.

Sector Breakdown of Lending Trends

• Loans for purchasing securities rose by 0.6% to 3.819 billion dinars, marking a 10.1% increase compared to March 2024’s 3.469 billion dinars.
• The oil and gas sector saw a 1.1% quarterly decline, falling to 2.43 billion dinars, and a 5% annual decline from 2.562 billion dinars in March 2024.
• Real estate loans rose 2.4% (249.7 million dinars) to 10.573 billion dinars, with an 8.3% annual increase (815.3 million dinars).
• Construction loans increased by 0.6% (17.2 million dinars) to 2.957 billion dinars.
• Industrial loans rose by 2.1% (57.8 million dinars) to 2.798 billion dinars, with a 4.9% annual growth.
• Loans to banks declined by 6.55% (224.1 million dinars) to 3.192 billion dinars.

  Monthly loan disbursements rose 8.9%, or 262.2 million dinars, from February’s 2.93 billion dinars.