Bank deposits in Kuwait swell to 56 billion dinars, with the private sector driving the growth, despite a small monthly decline.
In the heart of the Gulf, Kuwait's banking sector is experiencing a surge of growth and stability, according to recent reports and economic analyses. The sector, which includes major banks like the National Bank of Kuwait (NBK), is witnessing healthy expansion in deposits, loans, and equity, while maintaining strong asset quality and liquidity.
During the first five months of 2025, housing loans increased by 1.6%, amounting to 265.6 million dinars. This growth is part of a broader trend, as total loans issued to residents and non-residents rose by 3.3%, or 1.897 billion dinars, to reach 59.06 billion dinars by the end of May.
One of the key players, NBK, has reported a 5.6% year-on-year growth in customer deposits, reaching KD 23.5 billion (USD 76.2 billion) as of early 2025. Lending activity is equally strong, with NBK's customer loans and advances rising by 9.9% year-on-year to KD 24.6 billion (USD 79.8 billion). These figures suggest expanding asset bases in leading banks and robust credit growth.
NBK's shareholders' equity has also grown by 6.4% year-on-year, reaching KD 4.0 billion (USD 13.1 billion), reflecting improved capital strength. Banks in Kuwait maintain strong liquidity positions and capital adequacy, as exemplified by NBK's Capital Adequacy Ratio of 16.6%, well above regulatory requirements, and a very solid non-performing loan ratio of 1.38% with high coverage of 251% for impaired loans.
Industrial loans increased by 2.24%, while government deposits declined by 11.8%. However, personal facilities rose 1.22% to 19.557 billion dinars, and loans for purchasing securities increased by 9.6% to 4.16 billion dinars. Deposits in local Kuwaiti banks grew by 4.02%, reaching 55.98 billion dinars, and deposits in foreign currencies by the private sector increased by 21%, to 4.84 billion dinars.
The Central Bank of Kuwait is working on a new Open Banking regulatory framework to bolster innovation and digitization in banking services, indicative of a forward-looking trend aimed at improving financial infrastructure and services in line with national economic goals.
In summary, Kuwait's banking sector in mid-2025 is characterised by healthy growth in deposits, loans, and equity, along with strong asset quality and liquidity. This environment reflects confidence and stability in the Kuwaiti banking industry.
Investing in Kuwait's banking sector in 2025 could be a promising business opportunity, given the surge in growth and stability observed, with major banks like the National Bank of Kuwait (NBK) experiencing significant increases in deposits, loans, and equity. For instance, NBK reported a 5.6% year-on-year growth in customer deposits and a 9.9% increase in customer loans and advances.
