Kuwaiti banks’ profits surge by 28.5% in ’23

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KUWAIT CITY: In the fiscal year 2023, eight local banks in Kuwait experienced significant profit growth, collectively increasing their profits by 28.5 percent, totaling 1.447 billion dinars compared to 1.126 billion dinars in 2022.

The Kuwait Finance House led the sector with a remarkable 63.4 percent profit growth, reaching 584.5 million dinars. National Bank of Kuwait followed with profits of 560.6 million dinars, marking a 10.1 percent increase, while Boubyan Bank secured the third position with profits of 80.4 million dinars, a growth of 39.2 percent.

The Gulf Bank and Ahli United Bank achieved profits of approximately 71.2 million dinars and 45.1 million dinars respectively, showing growth rates of 15.2 percent and 39.9 percent, while the Warba Bank recorded profits of 19.6 million dinars, growing by 1.9 percent, while Burgan Bank witnessed a decline in profits to 43.5 million dinars from 52.1 million dinars in 2022. The surge in bank profits correlates with an improved operating environment in the fiscal year 2023 compared to 2022, influenced by multiple interest rate hikes by the Central Bank of Kuwait to align with the US Federal Reserve, ensuring the competitiveness of the Kuwaiti dinar against the dollar.

Additionally, the growth in profits was supported by an increase in total cash credit facilities provided by banks, totaling 53.581 billion dinars by the end of December 2023. While new credit facilities declined by 2.75 percent to 22.431 billion dinars, personal facilities decreased by 43.1 percent to 3.621 billion dinars, and consumer loans dropped by 7.3 percent to 915.6 million dinars. Despite these fluctuations, the total assets of local banks grew by 3.7 percent to 87.666 billion dinars, and net foreign assets increased by 17.9 percent to 12.21 billion dinars. Shareholders’ equity slightly rose by 0.12 percent to 14.39 billion dinars.