Kuwait bank loans surge by 1.59 pct in early 2024

Deposits inch up by 0.7%

KUWAIT CITY, April 15: From the beginning of the year until the end of February, total bank loans experienced a growth of 1.59%, increasing by 853 million dinars, reaching a total of 54.3 billion dinars, up from 53.5 billion dinars, reports Al-Jarida daily.

In contrast, deposits increased by only 345 million dinars during this period, with total deposits reaching 49.072 billion dinars by the end of February, compared to 48.7 billion dinars in December 2023, marking a 0.7% increase.

Private sector deposits saw an increase of 283 million dinars over two months, rising from 37.3 billion dinars in December 2023 to 37.6 billion dinars by the end of February. Similarly, deposits from government and public institutions rose by 62 million dinars during the same period, reaching 11.4 billion dinars, reflecting a growth of 0.5%.

Consumer loans saw resurgence with a growth rate of 1.1%, increasing by 22 million dinars since the beginning of the year to reach a total value of 1.9 billion dinars.

The housing sector witnessed slight growth, with facilities increasing by 0.3%, or 50 million dinars, to a total of 16.066 billion dinars.

The real estate sector also experienced a minor increase, rising by 8 million dinars to reach 9.758 billion dinars, representing a growth of 0.08%.

However, securities facilities decreased by 1%, amounting to 32 million dinars, mainly due to debt repayment operations resulting from distributions and returns achieved by debtors from shares.

The balance of securities by the end of February stood at 3.4 billion dinars, down from 3.5 billion dinars at the end of the previous year.

Commercial sector financing operations grew by 1.49%, or 53 million dinars, to reach 3.589 billion dinars since the beginning of the year. Similarly, industrial sector financing witnessed growth of 0.7%, or 21 million dinars, increasing from 2.646 billion dinars to 2.667 billion dinars.

Looking ahead, sources anticipate a growth rate of 7% for the current year, citing the launch of postponed and stalled projects as a significant contributing factor.

Additionally, there is an accelerating pace of citizen nominations for employment in government agencies, with approximately 5,000 nominations in the previous stage, indicating a growing need for banking services in the labor market.