Kuwait Investment Company: One-third of loans locally to National Bank
A report by the Investment Research Unit at Kuwait Investment Company (KIC) indicated that the release of the financial results for the first half of 2026 by Kuwaiti banks listed on the Kuwait Stock Exchange showed continued positive financial and operational performance for most banks, albeit at a moderate growth rate. This performance was supported by interest rates at relatively high levels and credit market growth. Aggregate net profits for Kuwaiti banks rose by 4.6% to reach 922 million dinars, compared to 882 million dinars in the first half of 2025.
The report noted that the banking sector continued to achieve positive operational results, with net revenues rising by 7.8% to reach 2.35 billion, led by Kuwait Finance House, which saw a 9.9% growth in its operational revenues to 990.5 million, and National Bank of Kuwait, which recorded a 4.8% increase in net revenues to 662 million. Boubian Bank also grew by 6% to reach 139 million, while Warba Bank recorded a 21% increase in its revenues to 59 million. Additionally, Burkan Bank’s revenues rose by 9.4% to reach 137.5 million.
Conversely, credit loss provisions increased, and the value of investments for the banking sector fell by 31% to 237 million, compared to 181 million previously. Kuwait Finance House recorded the highest provisions at 146 million, a 32.4% increase, while Burkan recorded 34.8 million and National Bank of Kuwait recorded 6.43 million.
The report highlighted that sustained high interest rates and credit market growth contributed to supporting the net interest and financing income for the sector. The banks' loan and financing portfolio increased by 9.5% on an annual basis to reach 85.65 billion, which positively impacted the sector's net interest and financing income, rising by 5.5% to 1.64 billion, compared to approximately 1.55 billion.
On the other hand, non-interest income for the sector rose by 13.6% to reach 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 income increased by 7.8% to reach a record high of 2.35 billion.
The report indicated that the aggregate total assets of listed Kuwaiti banks reached approximately 140 billion by the end of June 2026, an increase of 7.4% on an annual basis.
Regarding the loan portfolio, the total financing portfolio of the banking sector reached approximately 85.6 billion, equivalent to 61% of the sector's total assets, representing a 9.5% annual increase and a rise of 7.5 billion. This reflects accelerated growth rates driven by recent interest rate cuts and increased demand for financing from economic projects and the private sector, as well as consumer financing.
The report noted that National Bank of Kuwait maintained its lead with the largest loan portfolio, reaching 27.8 billion, a 9% increase, accounting for approximately one-third, specifically 32.4%, of the sector's total portfolio. Kuwait Finance House's portfolio reached approximately 22.8 billion, a 11.5% increase, representing 26.6% of the total. Boubian Bank maintained third place with 8.1 billion, an 8.5% increase, while Gulf Bank, the fourth-largest portfolio, reached 6.3 billion, a 11% increase. Kuwait International Bank recorded the highest growth rate in its financing portfolio at 11.6%, while Warba Bank's portfolio rose by 8.6% to 4.26 billion.
The report also covered the funding sources base for banks, primarily consisting of customer deposits, which reached approximately 81.5 billion, a 9.5% increase. National Bank of Kuwait led in the customer deposit base with 27 billion, a 13% increase, followed by Kuwait Finance House with 21.6 billion, a 9.4% increase. Boubian Bank held approximately 8.4 billion, a 7% increase, and Gulf Bank held approximately 5 billion, a 12.7% increase.
