Investor Presentaiton
Kuwait's banking sector
Snapshot
The Kuwaiti banking sector comprises 23 banks, including 11 domestic banks (five conventional, five Shariah-compliant and one specialized), and
branches of 12 international banks (11 conventional and one Islamic).
The sector is well regulated by the Central Bank of Kuwait ("CBK") with a number of regulations and supervisory norms to ensure the safety of the
banking sector including through strict supervision and imposition of prudential ratios, such as lending limits and concentrations, investment limits, liquidity
and capital adequacy.
The banking sector has demonstrated strong resilience and elevated levels of financial soundness over the past 10 years. In fact, the sector is very
well capitalized, with an average Capital Adequacy Ratio of 18.0% in the four quarters to 4Q19, 5% higher than the required minimum (since dropped to
10.5%). Non-performing loans to total loans stood at 1.5% in 4Q19.
Key indicators¹ (USD bn, end year)
■Loans
■ Deposits
3.5
110.7 108.0
114.2 110.8109.8 113.6113.0
116.6116.7 122.1122.0 126.6119.4
102.0 102.1
3.0
95.7
الوطني
2.5
2.0
1.5
Development of the Discount rate (%, end year²)
3.5
3.0
2.5
2.0
1.5
10
1.0
1.0
2012
2013
2014
2015
2016
2017
2018
2019
2010 2011 2012 2013
2014 2015 2016 2017 2018 2019 2020
Sources: Central Bank of Kuwait / Refinitiv
NBK
1Loans refers to total credit facilities to residents and deposits refer to private resident deposits, all as reported by the Central Bank of Kuwait 2 Latest data point is for June 2020
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