Kuwait banking sector - Record levels of loans granted

The credit granted by the Kuwaiti banking sector continued its growth during last May, bringing all types of loans granted to all economic sectors to about 2.5 billion dinars within the first five months of 2022 reaching a new record level at 44.8 billion dinars at the end of last May, reports Al- Anba daily.

On a monthly level, the credit granted by Kuwaiti banks increased during last May by 1.6 percent, with a value of 722 million dinars, compared to last April, which reached the level of credit at the end of 44.1 billion dinars.

This rise coincides with the clear recovery of the Kuwaiti economy since the beginning of this year, supported by the rise in oil prices to record levels and the gradual improvement in the pace of consumer spending. The increase in consumer loans granted to purchase durable goods and cars continued for the fourth consecutive month, recording a monthly increase of 0.75%, with a value of 14 thousand dinars during last May, to reach 1.86 billion dinars, compared to 1.85 billion dinars in last April.

Moreover, the credit growth was enhanced with the increase in the growth of loans directed to the purchase of securities, with a monthly increase of 13.5% to record a level of 3.509 billion dinars during last May, compared to 3.091 billion dinars in last April, and also recorded an annual increase of 38.97% compared to its levels in May of last year amounting to 2.525 billion dinars.

Deposits witnessed an increase during the month of May by 0.65%, reaching the level of 47 billion dinars, up from the level of 46.69 billion dinars that was achieved during the month of April. This rise is due to the wise policy of the Central Bank of Kuwait to raise interest rates in conjunction with the decisions of the Federal Reserve in the past period.

The government raised 77 million dinars of its deposits last May, bringing the total government deposits in the banking system to 7.178 billion dinars, with a monthly increase of 1.08% compared to 7.101 at the end of last April.