Banks’ profits reach KWD 922.2 million in the first half, up 4.57%

The banking sector recorded net profits of 922.207 million Kuwaiti dinars for the first half of 2026, representing a growth rate of 4.57 percent compared to the same period in 2025, when profits stood at 881.829 million dinars.

The banks navigated a period marked by geopolitical challenges, demonstrating their financial solvency and high operational capacity through positive results and sustained cash distributions.

This period also reflected the efficiency of financial centers and the outcomes of the sector’s historical hedging policies, which provided a reliable foundation during such challenging times.

Banks benefited in the current phase from several factors, most notably expansions and diversification of income sources, as well as superiority in digital transformation. Over the years, hundreds of millions have been invested in this area, and banks continue to strengthen infrastructure and develop digital channels by offering more services and flexible facilities that enhance operational levels and deliver services to customers wherever they are.

Eight out of nine banks posted positive results, with only one bank recording a decline in profits due to provisioning pressures rather than issues related to operational cash flows or revenues.

It is also worth noting that banks maintained strong ratings in recent reviews conducted amid the peak of events, with financial indicators demonstrating strength and resilience capable of absorbing any challenges or pressures.

Regarding provisions for the first half of the current year, they increased by 39.24 percent, driven by significant rises in only two banks—one by 113 percent and the other by 170 percent—while other banks either recovered some provisions, recorded declines, or achieved modest growth.

Total provisions for the first half of 2026 amounted to approximately 193.286 million Kuwaiti dinars, compared to 138.810 million dinars for the same period in 2025.