Kuwaiti banks' profits grow by 4.6% in the first half

Following the announcement by Kuwaiti banks listed on the Kuwait Stock Exchange of their financial results for the first half of 2026, the results demonstrated the continued positive financial and operational performance of most banks, albeit at a moderate growth rate. This performance was supported by interest rates remaining at relatively high levels and growth in the credit market. Consolidated net profits for Kuwaiti 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.

According to a report issued by Kuwait Investment Company, the banking sector continued to achieve positive operational results. Net operating revenues increased by 7.8% to reach KD 2.35 billion during the first half of 2026. Kuwait Finance House led this 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 Boubyan Bank recorded a 6% increase in net operating revenues, reaching KD 139 million. Meanwhile, Warba Bank reported a 21% rise in its operating revenues to KD 59 million in the first half of 2026, and Burkan Bank’s operating revenues increased by 9.4% to reach KD 137.5 million.

Conversely, provisions for credit losses and investment impairments for the banking sector rose by 31% during the first half of 2026 to reach KD 237 million, compared to KD 181 million in the corresponding period of 2025. Kuwait Finance House recorded the highest provisions at KD 146 million, representing a 32.4% increase. Burkan Bank’s provisions amounted to KD 34.8 million, while National Bank of Kuwait’s provisions reached KD 6.43 million.

The persistence of high interest rates and growth in the credit market helped support net interest and financing income for the sector. The loan and financing portfolio of Kuwaiti banks increased by 9.5% year-on-year during the first half of 2026 to reach KD 85.65 billion. This had a positive impact on net interest and financing income for the sector, which rose by 5.5% to reach KD 1.64 billion, compared to approximately KD 1.55 billion in the first half of 2025.

Furthermore, benefiting from sustained high interest rates, banks achieved total interest and financing income of KD 4.3 billion in the first half of 2026, a 9.5% increase 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, led by Kuwait Finance House and National Bank of Kuwait, which recorded growth of 16.1% and 13.9%, respectively. Consequently, net operating revenues for the sector increased by 7.8% to reach a record high of KD 2.35 billion.

Total consolidated assets of Kuwaiti listed banks amounted to approximately KD 140 billion at the end of June 2026, representing a 7.4% year-on-year increase. National Bank of Kuwait led in terms of asset size, with assets valued at KD 46.2 billion, accounting for 33% of the total assets of Kuwaiti banks, and growing by 6% year-on-year.

In contrast, Kuwait Finance House’s assets amounted to approximately KD 42 billion, a 9.7% year-on-year increase, representing 30% of the total assets of the banking sector.

Boubyan Bank ranked third in terms of asset size, with assets reaching 10.6 billion Kuwaiti dinars (KD), representing a year-on-year increase of 6.4%.

Regarding the loan portfolio, the total financing portfolio of the Kuwaiti banking sector amounted to approximately 85.6 billion KD at the end of June 2026, equivalent to 61% of the sector’s total assets. This reflects a year-on-year increase of 9.5%, with a growth of 7.5 billion KD. This underscores accelerating growth rates driven by recent interest rate cuts, increased demand for financing from economic projects and the private sector, as well as consumer financing.

National Bank of Kuwait (NBK) maintained its leading position with the largest loan portfolio, reaching 27.8 billion KD at the end of June 2026, up 9% year-on-year, accounting for 32.4% of the total banking sector loan portfolio.

Kuwait Finance House’s financing portfolio amounted to approximately 22.8 billion KD, up 11.5% year-on-year, representing 26.6% of the sector’s total financing portfolio.

Boubyan Bank retained third place in terms of financing portfolio size, reaching 8.1 billion KD, up 8.5% compared to the end of June 2025.

Gulf Bank, which holds the fourth-largest loan portfolio among Kuwaiti banks, recorded a portfolio of 6.3 billion KD, up 11% year-on-year.

With regard to the banks’ funding base, primarily composed of customer deposits, the total reached approximately 81.5 billion KD at the end of June 2026, up 9.5% year-on-year compared to the end of June 2025. NBK led in terms of customer deposits, which amounted to 27 billion KD, up 13%.

Customer deposits at Kuwait Finance House reached 21.6 billion KD, up 9.4%.

Boubyan Bank retained third place in terms of customer deposits, totaling approximately 8.4 billion KD, up 7% year-on-year.

Meanwhile, customer deposits at Gulf Bank amounted to approximately 5 billion KD, up 12.7%.