2.35 billion KD in operating revenues for banks in the first half
A report prepared by the Investment Research Unit at Kuwait Investment Company, covering the financial results of Kuwaiti banks for the first half of 2026, revealed the continued positive financial and operational performance of most banks, albeit at a moderate growth pace. This performance was supported by interest rates remaining at relatively high levels and growth in the credit market. Aggregate net profits of the banks rose by 4.6% to reach KD 922 million in the first half of 2026, compared to KD 882 million in the same period of 2025.
The report noted that the banking sector continued to achieve positive operational results, with net operating revenues increasing by 7.8% to reach KD 2.35 billion during the first half of 2026. Kuwait Finance House led the growth with a 9.9% increase, recording operating revenues of KD 990.5 million. National Bank of Kuwait saw its net operating revenues grow by 4.8% to reach KD 662 million, while Boubayan Bank recorded a 6% growth in net operating revenues, reaching KD 139 million. Meanwhile, Warba Bank saw its operating revenues rise by 21% to reach KD 59 million in the first half of 2026. Additionally, Burkan Bank’s operating revenues increased by 9.4% to reach KD 137.5 million.
Conversely, credit loss provisions and investment impairment charges for the banking sector increased by 31% during the first half of 2026 to reach KD 237 million, compared to KD 181 million in the corresponding period of 2025.
The persistence of high interest rates and the growth of the credit market also supported the sector’s net interest and financing income. The loan and financing portfolio of Kuwaiti banks grew by 9.5% year-on-year during the first half of 2026 to reach KD 85.65 billion, which positively impacted the sector’s net interest and financing income, rising by 5.5% to KD 1.55 billion in the first half of 2025.
Banks also benefited from sustained high interest rates, recording total interest and financing income of KD 4.3 billion in the first half of 2026, an increase of 9.5% compared to approximately KD 3.93 billion in the first half of 2025. The Kuwaiti banking sector maintained a positive performance in the first half of 2026, supported by credit and operating revenue growth; however, the significant rise in provisions kept profit growth at a moderate level.
On the other hand, non-interest income for the sector increased by 13.6% to reach KD 711.3 million, thereby raising the sector’s net operating revenues by 7.8% to a record high of KD 2.35 billion.
Total consolidated assets of listed Kuwaiti banks reached approximately KD 140 billion by the end of June 2026, an increase of 7.4% year-on-year. Regarding the loan portfolio, the total financing portfolio of the Kuwaiti banking sector stood at approximately KD 85.6 billion by the end of June 2026, representing 61% of the sector’s total assets. This reflects a 9.5% year-on-year increase, amounting to an additional KD 7.5 billion, indicating accelerated growth driven by recent interest rate cuts, increased demand for financing from economic projects and the private sector, as well as consumer financing.
