Checks valued at KD 21.7 billion submitted to banks in H1 of ’19

Property loans up by KD 705m: CBK

KUWAIT CITY, Aug 5: The value of checks submitted to banking sector in the first half of this year increased by 47 percent to reach KD 7 billion, adding the total value of the checks was KD 21.7 billion compared to KD 14.78 billion for the same period last year, reports Al-Rai daily quoting sources.

According to official figures issued by the Central Bank of Kuwait, the number of customers associated with those checks reached 133,700 during the first half of the year compared to 125,700 in 2018, while the number of checks submitted rose to 2.949 million in value.

The value of returned checks declined by 4.5 percent, while the value of checks that lacked balance was 2 million dinarsmaking it 42 million dinars during the first half of this year compared with 44 million dinars for the same period in 2018.

The number of customers submitting checks without balance dropped by 19.6 percent with a total of 499 clients; thus a total of 2044 customers were involved in the first half compared with 2,543 for the same period in 2018. Also, the number of checks without credit declined by 20 percent to 717 checks, registering 2,812 checks at the end of June 2019 compared to 3,529 checks at the end of June 2018.

The number of closed accounts declined by 17.8 percent (equivalent to 100 accounts) during the first six months of this year, reaching 459 accounts compared to 559 accounts. The number of customers in that regard declined by 18.8 percent (equivalent to 106) and thereby reducing to 457 customers compared to 563 customers within the same period of last year.

The number of checks that resulted in the closure of accounts as a result of lack of balance declined by 18.6 percent (equivalent to 311 checks) to register 1354 checks during the first half of this year compared to 1,665 checks for the same period in 2018.

Meanwhile, the Central Bank of Kuwait (CBK) reported that property loans rose by KD 705 million (KD 460 million) in the first half of this year. The lending balance for this sector has been almost constant since the first half of 2014 until the first half of 2018 and has risen again, strongly, especially this year, reports AlQabas daily.

The property recorded the highest value in additional loans compared to other sectors during the first half. Credit for the commercial sector increased its balance in 6 months to 100 million dinars, industry 12 million, investment companies 93 million, and consumer loans increased 164 million, and housing 73 million, while the property, the balance of lending in 6 months from 8.15 billion to 8.61 billion.

On the other hand, the balance of loans of the construction sector as well as the balance of credit for the purchase of shares and real estate sales rose 11% yearon-year in the first half, and the number of transactions rose by 15%.