Kuwait’s domestic credit up by 3.1% in Sept: KFH report

KUWAIT: Kuwait Finance House (KFH) said yesterday that the total domestic credit granted by the banking sector has grown 3.1 percent to KD 35.8 billion, equaling $118 billion, as of September 2017.

Meanwhile, financial facilities directed to industrial, non-bank financial institution, real estate, and construction sectors have fell in September by 11.8 percent, 4.1 percent, and 0.6 percent respectively, KFH said in its economic report, entitled “Credit Activity Development in Kuwait”.

The report indicated that the personal facilities sector recorded an increase in value in September by 3.6 percent to KD 515.5 million, equaling $1.7 billion compared to same period last year.

The crude oil and gas sector also saw an increase in value in September by 50.7 percent to KD 437.3 million, equaling $1.4 billion, compared to September 2016, it said. The sector also recorded an increase in the total credit in September by 3.6 percent to KD 1.3 billion ($4 billion), the report indicated. Personal credit facilities amounted to some 42 percent in September of the total 41.8 percent of credit granted in September 2016, said KFH. Furthermore, credit share granted to real estate and construction sector amounted to some 28 percent of the total credit granted last September compared to last year’s 29 percent.

Leased facilities’ share increased to 71.4 percent of personal facilities last September, compared to 67.8 percent in September 2016. Personal facilities’ share has also amounted to some 19 percent of personal credit facilities in September, compared to 22 percent of same period last year. Consumption loans amounted to 7.4 percent of personal credit facilities in September, which is a decrease from last year’s eight percent. Moreover, personal consumption loans granted to individuals to finance medical treatment and education coverage decreased by 4.6 percent to KD 1.1 billion ($3.3 billion), in September. — KUNA