Banking
From The Report: Kuwait 2018
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Underpinned by rising commodity prices and, consequently, increased domestic spending, Kuwait’s banking sector performed well in the 18 months to mid-2018. The industry posted net profit growth of 8.9% and total asset growth of 5.9% to $251.9bn in 2017, even as local banks moved to adhere to a raft of new provisioning rules. With the price of crude more than doubling from $28 per barrel in January 2016 to $76 in September 2018, the state has expressed confidence in its ability to move forward with $112.5bn in planned capital expenditure under the National Development Plan 2015-20. This will have positive knock-on effects for the banking sector, which has long been a beneficiary of state spending in the form of government deposits and financing opportunities. This chapter contains an interview with Mohammad Y Al Hashel, Governor, Central Bank of Kuwait; and Fatah Adour, General Manager, Citibank Kuwait.

Articles from this Chapter

Overview

Strong and steady: Years of provisioning have left local lenders in a stable position, with many continuing to post gains
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Underpinned by rising commodity prices and, consequently, increased domestic spending, Kuwait’s banking sector performed well in the 18 months to mid-2018. The industry posted net profit growth of 8.9% and total asset growth of 5.9% to $251.9bn in 2017, according to professional services firm KPMG, even as local banks moved to adhere to a raft of new provisioning rules. With the price of crude more than doubling from $28 per barrel in January 2016 to $76 in September 2018, the state has expressed…

Overview

Strong and steady: Years of provisioning have left local lenders in a stable position, with many continuing to post gains
OBG
plus

Underpinned by rising commodity prices and, consequently, increased domestic spending, Kuwait’s banking sector performed well in the 18 months to mid-2018. The industry posted net profit growth of 8.9% and total asset growth of 5.9% to $251.9bn in 2017, according to professional services firm KPMG, even as local banks moved to adhere to a raft of new provisioning rules. With the price of crude more than doubling from $28 per barrel in January 2016 to $76 in September 2018, the state has expressed…

Interview

Prudential policies: Mohammad Y Al Hashel, Governor, Central Bank of Kuwait, on how the regulator is responding to market changes
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Interview :Mohammad Y Al Hashel In what ways could monetary policy stimulate and encourage growth in non-oil GDP? MOHAMMAD AL HASHEL: We have already kept the interest rate as low as possible in order to help support credit growth in the non-oil sector of the Kuwaiti economy. In 2017 we raised the benchmark interest rate once, by 25 basis points, notwithstanding the three hikes undertaken by the US Federal Reserve. We raised our policy rate again by 25 basis point in March 2018, pushing…

Interview

Prudential policies: Mohammad Y Al Hashel, Governor, Central Bank of Kuwait, on how the regulator is responding to market changes
OBG
plus

Interview :Mohammad Y Al Hashel In what ways could monetary policy stimulate and encourage growth in non-oil GDP? MOHAMMAD AL HASHEL: We have already kept the interest rate as low as possible in order to help support credit growth in the non-oil sector of the Kuwaiti economy. In 2017 we raised the benchmark interest rate once, by 25 basis points, notwithstanding the three hikes undertaken by the US Federal Reserve. We raised our policy rate again by 25 basis point in March 2018, pushing…

Overview

Fintech revolution: Tech solutions are driving the evolution of the sector landscape
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Once reserved for ambitious start-ups and industry-leading tech operators, financial technology (fintech) has more recently caught the attention of major private sector firms and government planners alike, becoming a regular feature in budget speeches and strategic development plans. As fintech progressively plays a larger part in the lives of consumers, investors have quickly come to recognise its potential as a growth industry. The tech-focused Janus Henderson Global Technology Fund, for example, has expanded by more than 160% since February 2013, and grew by some 30% over the course of 2017. Fintech is rapidly advancing across an array of…

Overview

Fintech revolution: Tech solutions are driving the evolution of the sector landscape
OBG
plus

Once reserved for ambitious start-ups and industry-leading tech operators, financial technology (fintech) has more recently caught the attention of major private sector firms and government planners alike, becoming a regular feature in budget speeches and strategic development plans. As fintech progressively plays a larger part in the lives of consumers, investors have quickly come to recognise its potential as a growth industry. The tech-focused Janus Henderson Global Technology Fund, for example, has expanded by more than 160% since February 2013, and grew by some 30% over the course of 2017. Fintech is rapidly advancing across an array of…

Interview

Ongoing transformation: Fatah Adour, General Manager, Citibank Kuwait, on higher funding costs, regulatory change and embracing technology
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Interview :Fatah Adour How will higher funding costs affect sector liquidity? FATAH ADOUR: The impact of increased funding costs should be limited in the short term. First, Kuwait enjoys a strong buffer provided by its large sovereign wealth fund, as well as a low fiscal breakeven point compared to the average oil prices witnessed in 2018. This will further strengthen the country’s liquidity position. Second, Kuwait pegs the dinar to a basket of currencies, giving monetary authorities the…