GOVERNMENT REDUCES BANK DEPOSITS TO KD 7.17 BN
KUWAIT CITY, April 14: Credit from Kuwaiti banks saw a monthly increase in February, reaching its all-time high, registering a level of KD 43.162 billion, an increase of 1.04%, equivalent to KD 448 million , compared to last January, in which credit was at a level of 42.714 billion KD, while credit increased annually by 7.87%, with a value of 3.152 billion KD, compared to its February levels 2021, during which the level of KD 40 billion was recorded, according to data from the Central Bank of Kuwait for the month of February 2022, Al-Anba daily reports.
Central Bank data shows that consumer loans for the purchase of durable goods and cars saw a slight monthly decline of 0.01% or 300,000 KD during the month of February, reaching 1.837 billion. KD, against 1.838 billion KD last January, while registering a significant annual growth. growth of 14.03% from February levels last year, amounting to KD 1.611 billion. While installment loans granted to Kuwaitis for renovation or purchase of private homes increased by more than 0.68% during the month of February to reach 14.6 billion KD, against 14.5 billion KD last January. It also registered strong annual growth of 13.5% from February last year’s levels of KD 12.864 billion. Loans for the purchase of securities also increased, with a monthly increase of 5.1%, to record a level of 2.910 billion KD during the month of February, against 2.769 billion KD in January.
It also registered an annual increase of 15.43% from its levels in February last year, which stood at KD 2.521 billion. The oil and gas sector also witnessed a monthly increase of 0.86% to register the level of KD 2.220 billion in February, compared to KD 2.201 billion last January, and it registered an annual increase of 15.8%. compared to February 2021 levels. , or 1.917 billion KD. At the level of deposits, data from the Central Bank showed that banking sector deposits increased by 0.38% to reach 45.46 billion KD during the month of February, against 45.29 billion KD at the end of February. last January, and compared to their February 2021 levels.
The volume of deposits increased annually by 2.74%, an increase of KD 1.213 billion, compared to the level of KD 44.251 billion in February last year. The government reduced its deposits in February by 187 million KD, bringing the total government deposits in the banking system to 7.17 billion KD, a monthly decrease of 2.54%, against 7.357 at the end of last January, and an annual decline of 4.1% from its February levels of last year, which were KD 7.47 billion, this means that the government withdrew KD 307 million from its balances in one year.
At the private sector level, deposits in Kuwaiti dinars increased by 0.69% per month during the month of February to reach 35.726 billion KD at the end of the month after the private sector pumped 246 million KD from its deposits. deposits in Kuwaiti KDs, and private sector deposits in Kuwaiti dinars increased every year, reaching 1.017 billion KD compared to February levels of last year, it stood at 34.709 billion KD, or 2.93 %. During the month of February, private sector deposits in foreign currency increased by 4.73% to reach the level of 2.568 billion KD at the end of February. In addition, private sector foreign currency deposits increased on an annual basis during the month of February by 24.3%, an increase of KD 603 million from February levels last year, which amounted to KD 2,065 billion. In its latest report, EFG-Hermes Group expects Kuwaiti banks to achieve the highest profit growth on an annual basis among Gulf banks in the first quarter of 2022, Al-Rai daily reports. .
According to its estimates for the first quarter, earnings growth for Kuwaiti banks will reach 33% on an annual basis, compared to 21% for banks in the United Arab Emirates, 15% for Saudi banks and 21% for Qatari banks. “Hermes” said Kuwaiti bank allocations declined in the second half of 2021 compared to the first half of the same year, and credit quality improved, which bodes well for the cost of risk in 2022, while that banking sources said consumer spending was continuing. to drive the strong growth in individual loans, although its pace began to slow from 2021. As for revenue growth, the report forecast that Kuwaiti banks would reach 5% on an annual basis during the first quarter of this year. year, while “Hermes” estimates that credit growth will be 10%, with a cost of risk of 84 basis points over the period. The same compared to 131 basis points in the first quarter of 2021. On a quarterly basis, Hermes estimates that gross profit will decline by 10%, due to a 5% decline in total revenue on a quarterly basis , in addition to a slight increase in provisioning costs on a quarterly basis.