Deposits in the Kuwaiti banking sector at the end of the first 11 months of 2023 witnessed an increase of 2.9% to reach 48.27 billion dinars, compared to their levels recorded at the end of December 2022, which amounted to 46.91 billion dinars, which means that local banks attracted new deposits worth 1.36 billion dinars within 11 months. .
This significant increase in deposits in local banks was driven by an increase in government deposits, which rose by 30.5% and amounted to 1.03 billion dinars within 11 months, accounting for 74% of the new deposits that entered banks from the beginning of the year until the end of last November, bringing the balance of government deposits in banks to 4.4 billion dinars, compared to 3.37 billion dinars at the end of December 2022.
As for private sector deposits in dinars, witnessed an increase of 1.25%, amounting to 442 million dinars during the first 11 months of 2023, bringing the balance of private sector deposits in dinars with banks to 35.58 billion dinars at the end of last November, compared to a balance of 35.14 billion dinars at the end of December 2022. .
On the other hand, private sector deposits in foreign currencies increased over the past 11 months by 1.4%, amounting to 25 million dinars, bringing the balance of deposits in foreign currencies to 1.79 billion dinars at the end of last November, compared to 1,774 at the end of December 2022, while they declined on a monthly basis by 1.9% compared to 1.83 billion dinars at the end of last October.
As for the deposits of financial and non-financial public institutions, they declined from the beginning of the current year until last November by 2.1%, with a value of 138 million dinars, bringing their balance to 6.48 billion dinars at the end of November, compared to 6.62 billion dinars at the end of December 2022, while they increased at the level Monthly by 5.9%.
The monthly credit and deposit data for the Kuwaiti banking sector clearly reflect monetary policy trends, global interest rate changes, and macroeconomic indicators, as credit grew, but at a slower pace than deposit growth, and consumer loan growth has been slow since the beginning of the year, coinciding with a decline in the intensity of consumer spending after record levels that reached Recorded last year.
Credit granted by the banking sector recorded an increase during 11 months, amid an increase in most loans granted to all economic sectors, as credit facilities achieved a new record level of 53.46 billion dinars, an increase of 1.93% and a value of 1.01 billion dinars, compared to last December, which achieved credit. It contains 52.44 billion dinars.
The demand for borrowing, despite the rise in interest, reflects the improvement in business sector morale in light of the gradual improvement in the pace of consumer spending and ambitious government plans. Credit recorded a monthly increase during November at a value of 338 million dinars, an increase of 0.63% compared to last October, when credit reached 53.125 billion dinars.
Credit also increased by 2.1% on an annual basis, amounting to 1.09 billion dinars, compared to its levels in November 2022, during which it recorded a level of 52.36 billion dinars, according to Central Bank of Kuwait data for November 2023.
Consumer loans directed to purchase durable goods and cars recorded an increase by the end of the first 11 months of this year by 0.2%, at a value of only 4 million dinars, to 1.97 billion dinars, compared to 1.967 billion dinars at the end of last December.
It also recorded an annual growth of 0.45% compared to November 2022 levels of 1.96 billion dinars, and consumer loans increased monthly by 0.15% compared to last October’s levels of 1.97 billion dinars.
Loans directed to purchase securities during the period from January to November of this year also witnessed an increase of 1.7%, reaching a level of 3.35 billion dinars at the end of last November, an increase of 56 million dinars compared to 3.291 billion dinars at the end of December last year.
It also recorded an annual increase of 2.7% compared to its levels in November 2022, amounting to 3.259 billion dinars, while it decreased monthly by 0.23% compared to 3.355 billion dinars last October.
While the oil and gas sector witnessed a decline over the past 11 months by 5.3%, recording a level of 2.510 billion dinars last November, compared to 2.651 billion dinars last December.
It also recorded an annual decline of 7.24% compared to its levels in November 2022, amounting to 2.706 billion dinars, while the sector increased at the monthly level by 2.11% compared to 2.458 billion dinars last October.
Bank loans witnessed a decline during the first 11 months of the current year 2023 by 5.57%, at a value of 186 million dinars, to record a level of 3.153 billion dinars last November compared to 3.339 billion dinars at the end of December of 2022, while they increased monthly by 6.09% compared to 2.972 billion. dinars last October, and also decreased on an annual basis by 0.47% compared to the levels of November last year, which amounted to 3.168 billion dinars.
Non-bank financial institutions increased during the first 11 months of the current year by 23.3%, with a value of 370 million dinars, to record a level of 1.956 billion dinars last November compared to 1.586 billion dinars at the end of December of 2022, and they also increased monthly by 2.51% compared to 1.908 billion dinars. Last October, it also rose on an annual basis by 20% compared to the levels of November last year, which amounted to 1.630 billion dinars.
The Central Bank data showed that Kuwait’s reserve assets decreased during the first 11 months of this year, reaching a level of 14.08 billion dinars at the end of last November, a decline of 4.66% from its level of 14.77 billion dinars in December of last year.
The country’s reserves included about 12.54 billion dinars in the balance of deposits and foreign currencies abroad, in addition to about 1.32 billion dinars in Kuwait’s Special Drawing Rights at the International Monetary Fund. It also consists of about 226 million dinars in balance with the International Monetary Fund, and 51.5 million dinars in securities abroad.
Kuwait’s foreign reserves include gold (79 tons calculated at book value since its purchase) amounting to approximately 31.7 million dinars at the end of November 2023. Note that the foreign reserve does not include the external assets of the General Investment Authority, which is the sovereign fund.
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