• The assets of local banks jump approximately KD 3.24 billion, or 3.8%, reaching about KD 88 billion by the end of July 2024, compared to about KD 84.76 billion at the end of July 2023.
Credit facilities for Kuwait’s business sector are crucial for economic growth and commercial expansion. By the end of July 2024, these facilities increased by KD 860 million, or 3%, reaching approximately KD 29.5 billion, up from about KD 28.65 billion in July 2023, according to Al Anba newspaper.
According to Central Bank of Kuwait data, facilities granted to the business sector make up 60.8% of the total credit facilities for residents. These facilities encompass various types of loans and financing provided by banks and financial institutions for commercial, industrial, and service projects, and they vary based on the nature of the commercial activity and the volume of business.
The increase in business sector facilities was primarily driven by a KD 920 million rise, or 7.8%, in cash balances directed toward real estate and construction activities.
Other significant increases included KD 430 million in securities purchases from individuals, companies, and institutions (13.7% of the total), KD 170 million for industry, KD 270 million for oil and gas, KD 200 million in loans to banks, and KD 60 million for public services. There was also a minor decline in agricultural and fishing activities.
According to the data, banking sector indicators revealed that it maintained strong financial performance through the end of July, underscoring the importance of the banking system for the Kuwaiti economy. The sector plays a crucial role in financing various economic activities, supporting the expansion of the private sector, and providing financial services that contribute to economic growth and sustainability.
Bank assets
On the other hand, the assets of local banks increased by approximately KD 3.24 billion, or 3.8%, reaching about KD 88 billion by the end of July 2024, compared to about KD 84.76 billion at the end of July 2023. This rise is attributed to increases in several categories: foreign assets, which grew by KD 2.68 billion or 11.8%, reaching about KD 25.31 billion; claims on the private sector, which increased by KD 1.52 billion or 3.4%, reaching approximately KD 46.29 billion; and other assets, which rose by KD 230 million or 8.3%, totaling about KD 2.96 billion.
Claims on the private sector represent the main component of local bank assets, accounting for about 52.6% of total assets at the end of July 2024, compared to 52.8% at the end of the same month the previous year. Foreign assets followed, making up about 28.8% of total assets at the end of July 2024, up from 26.7% at the end of July 2023.
The increase in foreign assets is attributed to higher balances in foreign investments (KD 11.6 billion), credit facilities for non-residents (KD 4.6 billion), foreign bank loans (KD 2.2 billion), and other assets (KD 1.77 billion).
On the other hand, the data indicate that the balance of net foreign assets in local banks increased by KD 2.98 billion, or 28.4%, reaching approximately KD 13.46 billion at the end of July 2024, compared to about KD 10.84 billion at the end of July 2023. This increase is attributed to a rise in foreign assets by approximately KD 2.68 billion, or 11.8%, and a decline in foreign liabilities by about KD 300 million, or 2.4%.
Additionally, the total balance of residents’ deposits in local banks increased by about KD 1.88 billion, or 4%.Deposits from the resident private sector rose by approximately KD 810 million, or 2.2%, reaching about KD 49.48 billion at the end of July 2024, compared to about KD 47.6 billion at the end of the same month last year.
Private sector deposits are the main source of financing for local banks, accounting for 43.6% of the total requirements at the end of July 2024. Deposits from public institutions and government deposits each amounted to about 6.8% and 5.8% of the total requirements, respectively. By the end of July 2024, the total balance of private sector demand deposits was approximately KD 8.6 billion.
