Kuwait’s banking sector posts profit growth in first half of 2025

Al-Shall reported that the Kuwaiti banking sector, comprising nine banks, achieved growth in net profits during the first half of 2025 compared to the same period in 2024.

After deducting taxes and minority rights, total profits for the first half of 2025 reached approximately 882.2 million dinars, up 36.4 million dinars, or 4.3%, from 845.8 million dinars in the first half of 2024.

For the second quarter of 2025, profits totaled 477 million dinars, compared to 405.2 million dinars in the first quarter, reflecting a 17.7% increase. Profits also rose by 42.2 million dinars, or 9.7%, compared to the second quarter of 2024, which amounted to 434.8 million dinars.

Among the nine banks, six reported profit increases, while three experienced declines compared to the same period last year.

Total provisions set aside by banks in the first half of 2025 amounted to 84.7 million dinars, down from 121.3 million dinars in the same period of 2024, a 30.2% decrease. This reduction is attributed to the adequacy of provisions, resulting from a decline in non-performing loans and higher coverage ratios.

The five conventional banks posted total profits of 452.2 million dinars, representing 51.3% of the sector’s net profits, marking a 4.3% increase from the first half of 2024. The Islamic banks earned 430 million dinars, accounting for 48.7% of total net profits, also a 4.3% increase year-on-year.

The price-to-earnings (P/E) ratio for the sector, on an annual basis, reached 18.3 times, up from 14.9 times last year. The return on total assets remained at 1.4%, while the return on equity slightly declined to 12.4%, compared to 12.6% last year.

Among individual banks, Kuwait Finance House (KFH) recorded the highest profits at 342.1 million dinars, or 19.23 fils per share, representing 38.8% of total sector profits, a growth of 0.3% compared to the same period last year. National Bank of Kuwait (NBK) followed with profits of 315.3 million dinars (35 fils per share), accounting for 35.7% of sector profits, and showing a 7.8% increase year-on-year. Together, KFH and NBK contributed 74.5% of total banking profits, highlighting the advantages of scale for larger banks.

The remaining seven banks shared 25.5% of the sector’s profits, with the Commercial Bank of Kuwait (CBK) holding the largest share at 6.8% and Kuwait International Bank (KIB) the smallest at 1.7%.

Warba Bank recorded the highest growth rate in net profits at 121.2%, while Gulf Bank experienced the largest decline at 14.8%, followed by CBK at 3.7% and Burgan Bank at 2.0%.

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