KUWAIT CITY, Nov 16: Settlement transactions among local banks in Kuwait demonstrated a robust performance during the first nine months of 2023, amounting to approximately 182.7 billion dinars. This marked a significant increase of 7.5% compared to the closing balance of 18.270 billion dinars in September 2022, highlighting the active financial interactions within the banking sector. This surge in settlement operations coincided with the growth of the overall balance of cash credit facilities provided by banks across various sectors. Over the course of the first nine months of 2023, there was a 0.7% increase, representing a value of 381.7 million dinars.

The total cash credit facilities stood at 52.828 billion dinars by the end of September, compared to 52.447 billion dinars in December 2022. Personal cash facilities, a crucial component of the banking landscape, witnessed a steady uptick, registering a 0.9% increase since the beginning of the year. The balance of personal cash facilities, which includes advances from banks, reached 18.65 million dinars, showcasing the ongoing financial activities within this segment. Within the realm of personal facilities, the landscape exhibited a dynamic picture.

Consumer loans, a significant aspect of personal finance, decreased by 0.6%, reflecting a balance of 1.954 billion dinars in September compared to 1.967 billion dinars in December. In contrast, housing facilities experienced growth, rising by 1.4% to reach a balance of 15.96 billion dinars in September from 15.74 billion dinars in December. Private and typical housing loans witnessed a decrease of 8.1%, settling at 299.7 million dinars, down from 326.3 million dinars. Concurrently, the balance of facilities designed for purchasing securities demonstrated a positive trajectory, increasing by 1.5% to 3.34 billion dinars in September from 3.291 billion dinars in December. In terms of new credit facilities, there was a decrease of 2.45%, with the consolidated figure amounting to 17 billion dinars for the first nine months of 2023. This reflects a decline from the 17.474 billion dinars recorded during the same period in 2022.

Shifting the focus to broader financial indicators, the assets of local banks witnessed a commendable growth of 1.1%, amounting to 942 million dinars. This increase saw the total assets rise from 84.486 billion dinars at the end of December to 85.428 billion dinars in September. The net foreign assets of local banks also experienced a positive trajectory, growing by 2.9% to reach a value of 10.655 billion dinars by the end of September, up from 10.354 billion dinars in December. However, shareholders’ equity in local banks underwent a marginal decrease of 0.25%, amounting to 14.33 billion dinars in September, compared to 14.37 billion dinars in December 2022. In summary, the financial landscape in Kuwait’s banking sector during the first nine months of 2023 reflects dynamic activity in settlement operations, steady growth in cash credit facilities, and nuanced trends in personal facilities, signaling a resilient and evolving financial ecosystem.

By Mahmoud Shendi
Al-Seyassah/Arab Times Staff