KUWAIT CITY, Aug 3: The financial reports of 8 Kuwaiti banks for the first half of the current year, ending on June 30, 2023, unveiled a significant surge in their net profits, reaching 758.58 million dinars, representing a remarkable increase of 46.7% compared to their net profits of 517.07 million dinars for the same period in 2022, reports Al-Anba daily.

During the first half, Kuwaiti banks demonstrated robust operating performance, supported by the growth in net interest income and fee and commission income. This growth was attributed to the benefits of the cycle of monetary tightening and the raised central discount rate of the Central Bank of Kuwait, which remained at 4% until the end of June. Notably, the Central Bank had raised the discount rate to 4.25% by the end of July of the same year. The positive economic momentum, driven by strong consumer spending, further bolstered business activity, showcasing the operational prowess of Kuwaiti banks. Their success was attributed to their focus on core banking activities and prudent risk management, in line with the directives of the conservative and closely monitored Central Bank of Kuwait.

Conventional
Among the banks, the conventional ones accounted for 46.56% of the sector’s profits, totaling 353.20 million dinars, while the Islamic banks contributed 53.44% of the profits, amounting to 405.37 million dinars. Kuwait Finance House (KFH) emerged as the largest bank in terms of profits, generating 333.39 million dinars during the first half of 2023, exhibiting an impressive annual growth rate of 141.4%. It was followed by the National Bank of Kuwait with 275.34 million dinars, refl ecting a growth rate of 15.8%. Boubyan Bank secured the third spot with profits amounting to 41.27 million dinars, marking a growth rate of 25%.

Gulf Bank followed with a profit value of 35.84 million dinars, showcasing an annual growth rate of 18.3%. The subsequent positions were held by the National Bank, Ahli United Bank, Burgan Bank, and Warba Bank, with varying profit values and growth rates. In terms of operating revenues, the 8 Kuwaiti banks displayed a remarkable 26.14% increase, totaling 1.77 billion dinars during the first half of 2023. Kuwait Finance House (KFH) stood out with operating revenues of 734.36 million dinars, followed by the National Bank of Kuwait at 565.85 million dinars. Regarding total assets, the combined value of the 8 banks’ assets at the end of June 2023 reached 110.66 billion dinars, representing an 18.28% growth rate compared to the previous year.