There exists a subset of clients engaged in borrowing, carrying outstanding credit debts in the form of deposits. These clients bear varying weight, be it in terms of value or sheer numbers.
Sources reveal that the collective count of customers with both consumer and housing deposits and loans stands at 452,000. Their total deposits amount to approximately 3.7 billion dinars. These customers have also been granted consumer and housing loans totaling approximately 12.3 billion dinars. Remarkably, the ratio of their deposits to loans hovers around 30 percent, representing the overall balance of customer deposits against their loan balances. This indicates differing levels of coverage among customers, with some having substantial coverage while others possess less, emphasizing a notable gap, reports Al-Rai daily.
Consumer loans are a form of medium-term personal financing, typically not exceeding a duration of 5 years or a value of 25,000 dinars. On the other hand, housing loans constitute a long-term personal financing option, with a duration typically not surpassing 15 years and a value not exceeding 70,000 dinars. Customers have the option to combine both loans, provided that the repayment percentage remains within certain limits, with 40 percent for employees and 30 percent for retirees based on their respective salaries.
Approximately 23 percent of borrowing clients are concurrently consumers and holders of housing loans. The consumer loan portfolio comprises around 235,000 clients with a total value of approximately 1.8 billion dinars, while the housing loan portfolio encompasses about 520,000 clients with a collective debt balance nearing 15 billion dinars.
Regarding the remaining periods of borrowers’ indebtedness as of last November 30, it is estimated that about 36.3 thousand customers with consumer loans, constituting 15.6 percent of the total consumer loan portfolio, will continue to pay their installments until the end of the following year. Their debt value for 2023, in addition to the previous year, is projected to be around 166.5 million dinars. In the same period, there are about 17.7 thousand housing borrowers, accounting for 4.51 percent, with a debt value of approximately 132.936 million dinars, whose debt period is either recently expired or about to expire.
Further data indicates that around 46.2 thousand consumer borrowers are anticipated to continue their installment payments until the end of the next year, with a total debt value in 2023, in addition to the previous year, totaling about 166.5 million dinars. During the same period, 19.42 thousand housing borrowers are projected to have a debt value of about 122.7 million dinars.
For housing borrowers with payments due until the year 2030, their number reaches about 36.3 thousand customers, with a loan value of approximately 879 million dinars. Additionally, there are around 67.3 thousand customers whose housing entitlements expire after 14 years, with their debts amounting to about 2.01 billion dinars.
According to data from the Central Bank of Kuwait, as of last August, total deposits in the banking sector granted to residents experienced a decline for the third consecutive month, decreasing by approximately 46 million dinars (-0.1 percent) to reach 47.553 billion, compared to 47.599 billion in July. This reduction in the increase brings the total increase since the beginning of the year to 643 million (+1.37 percent), while it increased by about 365 million (+0.77 percent) compared to the level in August of the previous year, which stood at 47.188 billion dinars.
In the same period, the total credit facilities extended to residents and non-residents saw a decrease of about 34 million dinars (-0.06 percent), reaching 52.61 billion compared to 52.644 billion at the end of July. This decrease reduced their increase since the beginning of the year to 163 million (+0.31 percent), while the increase amounted to 1.264 billion (+2.46 percent) compared to its level in August of the previous year.
Meanwhile, total personal facilities observed an increase in the last month by approximately 92 million dinars (+0.5 percent), reaching 18.64 billion. This brought the increase since the beginning of the year to 163 million (+0.88 percent), and they recorded an increase of about 547 million (+3.02 percent) on an annual basis.
