Moody’s credit rating agency confirmed that Gulf banks are entering 2023 with a strong financial position, noting that continued economic growth, moderate inflation and strong financial performance lead to stable expectations of banks in the region, rating the Kuwaiti banking sector at A1 with a stable outlook, expecting oil production to expand in Kuwait until 2027.

The agency indicated in its report that the percentage of non-performing loans in Kuwaiti banks will remain at less than 2% of the total bank loans in 2023, stressing that the loan loss provisions fully give non-performing loans in Saudi Arabia, Kuwait, Qatar, Oman and Bahrain, which provides an additional degree of basic capital protection. Non-performing loans do not exceed an average of 16% of equity and provisions in Gulf banks, reports Al-Qabas daily.

Read Today's News TODAY... on our Telegram Channel click here to join and receive all the latest updates