Quarterly Deposits in Kuwaiti Banks Increase by 1.3 Billion in 2025 Q1, Fueled by Expansion in the Private Sector
Kuwaiti banks saw a 2.4% increase in total deposits during the first quarter of 2025, reaching a whopping 55.129 billion dinars. private sector deposits were the primary drivers of this growth, with a 2.5% rise, bringing the total to 42.528 billion dinars. Surprisingly, government deposits took a hit, shrinking by 2.6%.
On a monthly basis, deposits grew by 0.5% in March compared to 54.8 billion dinars in February. Compared to March 2024, deposits saw a 4% increase, marking a significant climb.
As for loans, total loans granted in the first three months of 2025 amounted to approximately 815.5 million dinars, raising the credit balance to 57.991 billion dinars. This represents a 1.3% monthly increase and a substantial 6.65% annual growth.
Despite a 1.23% drop in consumer loans, housing loans saw a 0.6% increase. Interestingly, private and model housing loans declined by 5.4%. However, total personal facilities creeped up by 0.4%.
Several sectors saw varying trends in lending. Loans for purchasing securities rose by 0.6%, marking a 10.1% increase compared to March 2024. The oil and gas sector, on the other hand, took a hit with a 1.1% quarterly decline. Real estate and construction loans, on the flip side, recorded a 2.4% and 0.6% increase, respectively.
While precise Q1 2025 deposit and loan data isn't provided in the reports, recent banking trends are clear. Kuwaiti banks display resilience with an 8.49% year-on-year increase in total assets and 12.63% net profit growth. The surge in non-oil output in April 2025 suggests increased corporate borrowing needs.
Banks are focusing on operational efficiency, reducing their cost-to-income ratio and aiming to embed AI for optimized operations. Key players like Burgan Bank and Commercial Bank of Kuwait have shown impressive performance, indicating investor confidence. Expansion of offerings, including international services and Sharia-compliant products, is also on the rise.
With the emphasis on AI adoption, innovative deposit mobilization and credit analysis methodologies could soon become the norm. Despite some fluctuation in certain sectors, the overall trend suggests a robust banking sector ready for the challenges ahead.
- The total volume of deposits in Kuwaiti banks on a quarterly basis increased by 2.4% in Q1 2025, reaching 55.129 billion dinars, with the private sector contributing significantly to this growth.
- In Q1 2025, total loans granted by Kuwaiti banks amounted to approximately 815.5 million dinars, showing a 1.3% monthly increase and a substantial 6.65% annual growth, despite a 1.23% drop in consumer loans.
- The investment in AI for optimized operations by Kuwaiti banks, such as Burgan Bank and Commercial Bank of Kuwait, is indicative of their focus on operational efficiency, which could soon become the norm for innovative deposit mobilization and credit analysis methodologies in the finance industry.
