Kuwait is home to the seven largest banks in the world, as per recent findings. The year 2021 was a major comeback for the Banking Sector in Kuwait, registering a massive revenue of KD 42.3 bln since its stalled growth in 2020. Analysis shows, the banks in Kuwait have loaned an estimated KD 8.9 billion, recording a growth rate of 27% during the period 2016 to 2021.
As reported in April 2022, the credit score of the banks in Kuwait soared in February 2022 registering KD 43.162 billion, a growth of 1.04% from 42.714 billion in January 2022. The rise in the figures is the highest recorded in history, based on monthly analysis. Moreover, its annual growth showed a 7.87% increase that amounts to KD 3.162 billion and KD 43.162 billion in total as of February 2022 from KD 40 billion in February 2021 as per the analysis given by the Central Bank of Kuwait.The consumer loans lent for automobiles and durable goods saw substantial growth of 14.03% (KD 1.611 billion) as seen from February 2021 to 2022. However, it recorded a drop of 0.01% (KD 300,000) in February 2022 with KD 1.837 billion from KD 1.838 billion in January 2022.The housing loan grant to the consumers of Kuwait increased by 13.5% touching KD 14.6 billion as seen in February 2022 from 12.864 billion in February 2021. The loans issued for the purchase of securities too furthered with 15.43% touching KD 2.910 billion as analyzed from February 2021 to 2022.
Kuwait shines in the GCC
As per reports, with an increase of 2.74%, deposits touched KD 45.46 billion in February 2022 from KD 44.251 billion in February 2021. In specific, the deposits of Kuwaiti dinars in the private sector rose to KD 35.726 billion as of February 2022 from KD 34.709 billion in February 2021, an increase of 2.93%. Moving ahead to deposits in foreign currencies, it reached KD 2,065 billion in February 2022 with an increase of 24.3% from February 2021.
Reportedly, the Banks in Kuwait have emerged to generate the highest revenue annually in the Gulf Cooperation Council (GCC) during the first quarter of 2022. Getting meticulous, Kuwaiti banks have gained profits at a growth rate of 33% while its 15% for Qatar banks, and 21% for UAE banks. With a cost risk of 84 basis points, the growth of lending loans has reached 10% and revenue has advanced to 5% in the first quarter of 2022.
Sharia Approved Financial Growth
Bahrain headquartered Ahli United Bank B.S.C, one of the leading financial institutions in Kuwait has been constantly offering its banking services with its sophisticated Islamic finance products comprising Corporate banking, Retail banking, Private banking, Treasury, Investments, Wealth Management and Treasury. As the first bank to be established in Kuwait, Ahli United bank has been constantly introducing simplified Sharia compliant financial solutions with streamlined procedures and well established security posture, tailored to the needs of its millions of customers. The bank has a vast portfolio with upscaled operations in Kuwait, Egypt, United Arab Emirates, Iraq, Libya, Al hilal life, and the United Kingdom from its base in Bahrain.
A relentless pursuit of Digital transformation has reshaped AUB’s processing as it brings in sustainable innovations for customer experience (CX) banking. More investments in data analytics are in the cards for AUB as the bank looks forward to analyse the spending trends, and understand customer sentiments that would aid to provide its consumers an ideal banking experience.
In July 2022, Ahli United bank announced that the bank touched KD 20.3 million net profits during the first half of 2022 with an increase of 12.3% from KD 18 million in the first half of 2021. Additionally, the bank registered a total operating income of KD 46.4 million during the first six months of 2022 from 46.3 million during the first six months of 2021. In particular, Ahli United bank has been doing phenomenally well in Kuwait and plans to strategize its growth to stay ahead by enhancing its banking experience with affordable rates.
Owing to its effective technology backed banking operations and embedding sustainable ethics & adopting strategies for green banking as a CSR (Corporate Social Responsibility) bank, Ahli United Bank grabbed two awards recently at International Business Magazine. The titles conferred were ‘Best Banking Technology Kuwait 2022’, and ‘Best CSR Bank Kuwait 2022’.
Future lies in Coopetition
Since the pandemic, it’s a new era for the Kuwaiti banking sector as it has been steadfast that fintech and cloud computing is the future of its banking services. The Kuwaiti banks have faired well so far with the digital transformation and look forward to digitizing most of its operations in the coming years. Key decision making for business continuity, proactive approach towards data security, formulating contingency plans, acquisitions, partnerships and keeping pace with ever – evolving technology, pretty much defines the future of the Kuwaiti Banking sector.
Blog By Harish Rajulu
