Banks attracted new deposits worth 6.33 billion dinars during the year

Kuwaiti banks successfully expanded their deposit base at a robust pace over the past twelve months, attracting KD 6.33 billion in new deposits by the end of June 2026. This pushed the total balances of resident and non-resident deposits to KD 62.29 billion, marking a historic high for the banking sector. This milestone reflects sustained confidence among individuals and institutions in the banking sector, as well as its strengthened capacity to provide stable funding sources that support credit growth and finance economic activities.

Data from the Central Bank of Kuwait shows that total resident and non-resident deposits rose from KD 55.95 billion at the end of June 2025 to KD 62.29 billion by the end of June 2026, an increase of KD 6.33 billion, representing an annual growth rate of 11.33%. This stands as one of the highest annual growth rates recorded by the banking sector in recent years.

The growth was not limited to year-on-year comparisons; deposits continued their upward trajectory throughout the year, rising from KD 59.15 billion at the end of December 2025 to KD 62.29 billion by the end of June 2026. This represents an increase of KD 3.135 billion over just six months, with a growth rate of 5.3%, underscoring the continued inflow of savings into local banks and the steady enhancement of their funding resources.

This increase is not merely a reflection of deposit balance growth but indicates a broadening of the funding base upon which banks rely to finance their operations. This provides them with greater flexibility to expand credit granting and finance various economic activities, while also strengthening their financial positions and their ability to meet the rising demand for financing. The fact that total deposits reached KD 62.29 billion confirms that the banking sector has recorded its highest-ever deposit balance, continuing an upward trend that reflects the stability of the banking environment and the strength of the regulatory framework implemented by the Central Bank of Kuwait, alongside the enduring trust the sector enjoys among individuals and companies.

Data reveals that private sector deposits reached KD 45.65 billion by the end of June 2026, compared to KD 43.781 billion in June 2025, an increase of KD 1.871 billion, with an annual growth rate of 4.27%. Compared to their balance of KD 45.16 billion at the end of December 2025, they rose by approximately KD 485 million, or 1.07%.

Conversely, foreign currency deposits recorded notable growth, rising from KD 6.11 billion at the end of December 2025 to KD 6.3 billion by the end of June 2026.

The data also reflects the continued preference of depositors for long-term savings. Time deposits reached KD 23.71 billion by the end of June 2026, compared to KD 23.4 billion in June 2025, an increase of KD 309.3 million, with a growth rate of 1.32%. This confirms the banks' continued reliance on more stable funding sources to support their operations.

In contrast, demand deposits stood at KD 9.53 billion by the end of June, down from KD 9.75 billion a year earlier, a decrease of KD 226.2 million, or 2.32%. This indicates a continued shift of some depositor funds into savings and time deposits to benefit from the returns offered by banks.

This performance coincides with the continued growth of credit activity during the current year, reflecting the banks' success in balancing the development of funding sources with the expansion of lending. This enhances their role in supporting the national economy and financing investment and development projects. Government deposits reached KD 5.9 billion by the end of June 2026, compared to KD 4.8 billion at the end of December 2025, recording growth of 22.9%. Meanwhile, deposits of public institutions reached KD 10.73 billion by the end of June 2026, compared to KD 9.8 billion at the end of December 2025, recording growth of 9.5%.

The performance recorded during the first half of 2026 confirms that the Kuwaiti banking sector continues to consolidate its position as one of the most resilient financial sectors in the region. This is underpinned by an expanding deposit base, strong solvency, and an advanced regulatory framework, which enhance its ability to continue supporting economic activity in the coming period, especially as deposits reach their highest historical level for the first time.

It is worth noting that non-residents in Kuwait refer to non-Kuwaiti individuals who have not obtained work permits or residence visas, as well as foreign companies and commercial establishments not domiciled in the State of Kuwait but licensed by the Ministry of Commerce and Industry or relevant authorities. This includes foreign companies executing works under special contracts with the government, as well as foreign diplomatic bodies and their affiliated entities.