Kuwaiti banks’ total assets hit KWD66b in 2014: CBK data

15/07/2015 07:17 AST

KUWAIT — The consolidated balance sheet of Kuwait’s banking sector marked another year of double-digit growth in 2014, sending the total assets of the country’s banks to KWD66.4 billion.

The past years saw Kuwait’s banks adding KWD7.2 billion to their assets, a growth of 12.2 percent against 11.9 percent in 2013, according to a report by the Central Bank of Kuwait (CBK).

The increase marks the highest expansion recorded in the last seven years, said CBK Governor Mohammad Al-Hashel.

“The growth of the consolidated balance sheet of banks reveals, in part, that the increased international activity of Kuwaiti banks remains robust and accounts for 20.4 percent of the consolidated balance sheet, thereby providing a major source of banks’ income that reduces reliance on local sources and strengthens their stability,” Kuwait’s News Agency quoted Al-Hashel as saying.

Furthermore, the Arab nation’s banks also expanded their consolidated loan portfolio by another KWD4.2 billion, delivering a five-year high growth of 11.5 percent.

The value of credits facilities granted to the national economic sectors picked up from KWD29 billion at the end of 2013 to KWD30.8 billion in December 2014, up by KWD1.8 billion or 6.2 percent.

The governor said the high ratios of high quality liquid assets fortify the financial status and soundness of the financial indicators of Kuwaiti banks and their resilience to unanticipated shocks without any adverse effect on financial stability.

Meanwhile, Kuwait's Gulf Bank, the state's fourth-largest lender by assets, reported a 28.7 percent jump in second-quarter net profit on Tuesday on the back of higher net interest income.

The bank said in a bourse filing that net profit for the three months to the end of June was KD8.88 million ($29.4 million), compared to KD6.90 million in the year-earlier period.

Global Investment House forecast the bank would post net profit of KD11.08 million during the quarter.

Gulf Bank attributed the net profit rise to improved core profitability mainly due to higher net interest income, which rose 5.7 percent to KD30.08 million.

This resulted in a 5 percent growth in operating profit, Gulf Bank added. — SG/Kuna

Saudi Gazette