|17 February, 2020

Kuwait’s local credit grows at 4.3% in 2019 - NBK

Household credit expanded by 5% in 2019

Close-up of Kuwaiti bank notes (toned). Image used for illustrative purpose.

Close-up of Kuwaiti bank notes (toned). Image used for illustrative purpose.

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Kuwait’s credit growth was stable at 4.3% year-on-year (YoY) in 2019 as compared to 4.2%, according to a recent report by the National Bank of Kuwait (NBK).

Business lending growth weakened to 4.3% last year from 5.1% in 2018, while household credit growth slowed to 5% when compared to 6%, versus an increase of 9% in credit to non-bank financial institutions last year.

In the meantime, growth in business lending recorded 4.3%, backed by a rise of 9.3% in real estate sector credit, which accounted for 89% of the total business lending growth in 2019.

On the contrary, credit to the construction sector registered the weakest growth of 4.1%.

Moreover, despite accounting for 10% of credit to individuals, personal consumption loans represented 58% of the total increase in household credit in 2019.

It is noteworthy that NBK expects slower growth for personal consumption loans when compared to the rise recorded in 2019.

Source: Mubasher

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