Local banks’ cash credit balances soar 3.2% to reach KD 1.74 billion

• Industrial financing surged by 200.4 percent, increasing by KD 50.7 million from KD 25.3 million to KD 76 million during the first five months of this year. Oil and gas financing plummeted by 99.5 percent, declining by approximately KD 105.3 million from KD 105.8 million to KD 500,000 in May.

• Private sector deposits with banks increased by three percent, rising by KD 1.069 billion from KD 35.519 billion in December to KD 36.589 billion in May. They also increased by 0.15 percent on a monthly basis, reaching KD 36.531 billion by the end of April.

• Local banks’ assets increased by 0.9 percent over five months, rising by about KD 764.2 million from KD 87.64 billion in December to KD 88.41 billion in May.

Cash credit facilities ‘loans’ balances at local banks increased by 3.2 percent during the first five months of this year, rising by KD 1.74 billion from KD 53.557 billion at the end of December to KD 55.297 billion in May. On a monthly basis, they rose by 0.77 percent, or about KD 424.2 million, from KD 54.873 billion at the end of April. Annually, the balances increased by 5.8 percent, from KD 52.26 billion in May 2023, according to Al Rai newspaper.

On the other hand, the total monthly credit facilities provided by banks to all sectors ‘including new grants, rescheduling, and limit increases’ increased by about KD 27.7 million, or 1.45 percent, from KD 1.991 billion in April to KD 1.932 billion in May. However, this figure declined by 11 percent annually, or approximately KD 239.4 million, from KD 2.171 billion in May 2023.

The value of personal facilities provided witnessed significant growth in May, increasing by 24 percent, or approximately KD 86.1 million from KD 357.6 million in April to KD 443.7 million in May. However, it declined by 3.66 percent annually, from KD 460.6 million in May 2023.

Personal facilities are divided into consumer, housing, and other categories. Consumer loans increased by 26 percent from KD 35 million to KD 169.3 million in May, housing facilities rose by 27.1 percent from KD 20 million to KD 93.6 million, and other loans increased by 22.8 percent from KD 51.1 million to KD 274.4 million.

Real estate facilities increased by ten percent, rising by KD 45.1 million from KD 446.6 million in April to KD 491.7 million. Meanwhile, construction financing decreased by 13.3 percent, dropping by about KD 18.3 million from KD 137.4 million to KD 119.1 million.

Industrial financing surged by 200.4 percent, increasing by KD 50.7 million from KD 25.3 million to KD 76 million. On the other hand, oil and gas financing plummeted by 99.5 percent, declining by approximately KD 105.3 million from KD 105.8 million to KD 500,000 in May.

Deposits in local banks

The Central Bank’s data revealed that deposits in local banks increased by 1.33 percent over five months, rising by about KD 649.2 million from KD 48.97 billion in December 2023 to KD 49.37 billion in May. They also increased annually by two percent, or about KD 982.3 million, from KD 48.394 billion in May 2023.

Local deposits are divided into private sector deposits, government deposits, and deposits from public institutions. Private sector deposits with banks increased by three percent, rising by KD 1.069 billion from KD 35.519 billion in December to KD 36.589 billion in May. They also increased by 0.15 percent on a monthly basis, reaching KD 36.531 billion by the end of April.

On the other hand, government deposits grew by 0.87 percent, increasing by about KD 40.3 million from KD 4.631 billion in December 2023 to KD 4.671 billion in May. They also rose annually by 13.5 percent, or about KD 557 million, from KD 4.114 billion in May.

Deposits from public institutions decreased by 7.4 percent, or approximately KD 501 million, from KD 6.766 billion in December to KD 6.265 billion in May. However, they increased by 5.8 percent on a monthly basis, rising by about KD 348.2 million compared to KD 5.916 billion in April.

Shareholders’ equity in local banks

Local banks’ assets increased by 0.9 percent over five months, rising by about KD 764.2 million from KD 87.64 billion in December to KD 88.41 billion in May.

Shareholders’ equity in local banks increased by 8.2 percent, or KD 1.208 billion, from KD 14.686 billion in December to KD 15.894 billion in May. This marked an 11 percent increase, or KD 1.58 billion, annually, up from KD 14.311 billion in May, and a 1.6 percent rise monthly, or about KD 255 million, from KD 15.63 billion at the end of May last year.

The value of loans obtained by banks from other banks increased by 10.57 percent, rising by about KD 75.3 million from KD 711.8 million at the end of December to KD 787.1 million in May. Annually, this figure rose by 36.4 percent, or approximately KD 210 million, from KD 576.9 million at the end of May 2023.

Kuwait’s local liquidity hits KD 40.1 billion

Domestic liquidity ‘Money Supply 2’ in Kuwait increased by 1.5 percent year-on-year in May 2024, with Money Supply 2 rising from KD 39.54 billion in May 2023 to KD 40.14 billion last month. However, it decreased by 0.04 percent month-on-month compared to April 2024, when it was KD 40.15 billion.

The broad concept of money supply includes current accounts, time deposits, savings accounts, and cash in circulation. The value of cash in circulation in Kuwait in May amounted to KD 2.13 billion, marking a 2.37 percent increase from its level of KD 2.081 billion in the same month of 2023. Monthly, it rose by 0.43 percent. The cash in circulation last month consisted of KD 2.099 billion banknotes of various denominations and KD 31.57 million coins.

State reserves drop to 14.59 billion dinars, a 3.3% decline

The value of the official reserve assets of the State of Kuwait witnessed a decline of 3.3 percent, or about KD 496.7 million, by the end of May 2024, down from KD 15.087 billion in April.

Over the past five months, it also decreased by 0.2 percent, or about KD 29.2 million, from KD 14.62 billion last December. Annually, it declined by 6.6 percent, or KD 1.03 billion, compared to KD 15.626 billion in May 2023.

These assets comprise five main items. Monetary gold remained stable at KD 31.7 million. The item ‘reserve position with the Fund’ decreased by 3.4 percent in May to KD 215.7 million, while the item ‘special drawing rights’ decreased by 0.17 percent to KD 1.313 billion.

The item of foreign currency and deposits abroad fell by 3.6 percent, or about KD 491.4 million, from KD 12.982 billion at the end of December to KD 12.978 billion in May. The item of foreign securities remained stable at KD 51.5 million.