Revealed: Top banks in Kuwait

Things have been on the up for the GCC’s banks, which collectively recorded a better year in 2017 despite slowing economic growth in the region as a whole.

Banking activity was supported by a higher oil price and continued infrastructure investment as Gulf states diversify their economies in various ways. Commercial activity in the region expanded in 2017 and consumer confidence grew, albeit slightly. As a result, our list of the region’s 50 leading banks – ranking institutions in Bahrain, Kuwait, Oman, Saudi Arabia and the UAE – recorded higher net profit in 2017.

Read: Revealed: Top 10 banks in Bahrain

The second half of 2017 was more challenging, but economic growth in the region is expected to improve slightly in 2018. This, along with diversification efforts, should provide a boost to the banking sector this year, meaning the forecast is for a marginal increase in returns.

Of the country’s covered in the report, Kuwait’s banking sector saw highest asset growth of 7 per cent in 2017, followed by the UAE at 5 per cent.

Similarly the country saw the largest net profit increase, up 15.8 per cent.

TOP BANKS IN KUWAIT
(Based on total assets of listed banks at the end of 2017)

1. National Bank of Kuwait

Assets in 2017 ($000): 86,207,288
Assets in 2016 ($000): 79,085,342
Growth (2016-2017): 9.01
2017 net profit ($000): 1,133,460
Return on assets (ROA) in 2017: 1.43

2. Kuwait Finance House

Assets in 2017 ($000): 57,476,758
Assets in 2016 ($000): 53,910,645
Growth (2016-2017): 6.61
2017 net profit ($000): 709,123
Return on assets (ROA) in 2017: 1.32

3. Burgan Bank

Assets in 2017 ($000): 24,553,682
Assets in 2016 ($000): 23,750,616
Growth (2016-2017): 3.38
2017 net profit ($000): 228,709
Return on assets (ROA) in 2017: 0.96

4. Gulf Bank

Assets in 2017 ($000): 18,819,219
Assets in 2016 ($000): 17,863,470
Growth (2016-2017): 5.35
2017 net profit ($000): 159,017
Return on assets (ROA) in 2017: 0.89

5. Commercial Bank of Kuwait

Assets in 2017 ($000): 14,551,609
Assets in 2016 ($000): 13,479,134
Growth (2016-2017): 7.96
2017 net profit ($000): 183,775
Return on assets (ROA) in 2017: 1.36

6. Al Ali Bank Kuwait

Assets in 2017 ($000): 14,442,801
Assets in 2016 ($000): 14,000,369
Growth (2016-2017): 3.16
2017 net profit ($000): 118,083
Return on assets (ROA) in 2017: 0.84

7. Boubyan Bank

Assets in 2017 ($000): 13,147,007
Assets in 2016 ($000): 11,359,892
Growth (2016-2017): 15.73
2017 net profit ($000): 157,854
Return on assets (ROA) in 2017: 1.39

8. Kuwait International Bank

Assets in 2017 ($000): 6,346,815
Assets in 2016 ($000): 6,031,792
Growth (2016-2017): 5.22
2017 net profit ($000): 58,634
Return on assets (ROA) in 2017: 0.97

Looking ahead

In 2018, GCC banks are expected to record only modest growth in both assets and net profit, reflecting continuing challenging trading conditions. Economic growth in the region will be slightly higher, allowing for modest loan growth.

Maintained government infrastructure investment in the GCC and increased government spending in some GCC states will help to boost loan growth, albeit only modestly, and returns for the GCC banking sector are expected to be marginally higher over the course of the year.