Kuwaiti banks post 1.67 bln dinars in profits as sector shows resilience despite tax pressures
Banking profits edge up in 2025; strong demand seen for 150 million dinars government debt issue
The banking sector concluded 2025 with total net profits of 1.670 billion dinars, compared to 1.660 billion dinars in 2024, marking an increase of 10.25 million dinars and a modest growth rate of 0.6 percent.
Performance varied across banks: profits declined at three banks by differing percentages, one bank’s results remained unchanged, while five banks achieved profit growth ranging between 4 percent and 121 percent, reflecting overall marginal sectoral growth.
Profitability was impacted by the implementation of the unified tax on multinational entities, which imposed notable costs on some major institutions. Despite this, banks recorded solid growth in local and international operations and operating revenues, highlighting the sector’s operational resilience, reports Al-Jarida daily.
All nine banks maintained healthy profit levels. With positive expectations regarding the volume and quality of upcoming projects, along with banks increasingly pursuing selective opportunities in Gulf markets, performance sustainability is anticipated.
Provisioning continued to influence profit levels. Banks sometimes benefit from reversing provisions in certain years, boosting earnings, while subsequent periods without reversals can make comparisons appear weaker.
In 2025, total provisions stood at 409.8 million dinars, down from 422 million dinars in 2024 — a decline of 2.9 percent (around 12.2 million dinars).
Banks’ operating income, core activity cash flows, financial structures, and capital strength indicators remain solid, supporting a positive long-term outlook.
The Central Bank of Kuwait, on behalf of the Ministry of Finance, issued treasury bonds and public debt instruments worth 150 million dinars with a three-year maturity and a unified yield of 3.625 percent.
The issuance, dated February 4, 2026, will mature on March 31, 2029. A total of 28 competitive bids were submitted, with six accepted, totaling 610 million dinars in bids — more than four times oversubscribed, signaling strong investor demand.
