Kuwaiti Banks See 1.6% Monthly Increase in Financial Institution Financing
4.745 billion dinars in April from 4.667 billion dinars in March, marking a 6% annual increase from 4.714 billion dinars in April 2023
2 min
Kuwait banks significantly boosted financing for the other services sector in April, with an increase of 115.5 million dinars or 48.2% from March, totaling 354.7 million dinars compared to 239.2 million dinars. Annually, this sector experienced a substantial surge of 263.3 million dinars or 288%, rising from 91.4 million dinars in April 2023. Over the first four months of the year, banks extended approximately 764.4 million dinars in financing to financial institutions.
The cumulative balance of financial institution financing by local banks grew by 1.6% monthly to 4.745 billion dinars in April from 4.667 billion dinars in March, marking a 6% annual increase from 4.714 billion dinars in April 2023. In terms of deposits, foreign currency deposits rose by 0.9% to 1.9 billion dinars (approximately 6.1 billion dollars). Conversely, government bank deposits decreased by 32 million dinars in April, totaling 4.616 billion dinars compared to 4.648 billion dinars in March. Local banks’ claims on the Central Bank in dinars, represented by bonds, remained steady at 3.3 billion dinars (around 11 billion dollars).
Total assets of local banks saw a marginal increase of 0.2% in April, reaching 87.8 billion dinars (about 286 billion dollars). However, net foreign assets decreased by 7% to 12.7 billion dinars (approximately 41.4 billion dollars). Credit facilities, encompassing both resident and non-resident sectors, increased by 352 million dinars to 54.873 billion dinars in April from 54.521 billion dinars in March.
Kuwaiti banks also extended credit facilities for securities purchases amounting to about 565 million dinars in the first four months of 2024. In the investment sector, banking facilities allocated for stock exchanges rose by 20.7 million dinars or 12% monthly to 193 million dinars in April, up from 172.3 million dinars in March. Annually, these facilities surged by 156.3 million dinars or 425.8% from 36.7 million dinars in April 2023.
However, credit facilities for purchasing securities, granted to residents and non-residents, decreased by about 82 million dinars, ending April at 3.453 billion dinars compared to 3.535 billion dinars in March 2023. Similarly, facilities for individuals amounted to 1.144 billion dinars, a decrease of 69 million dinars from 1.213 billion dinars in March 2024.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Employment grew for the 16th consecutive month as companies expanded.
2 min
According to a recent PMI report, Qatar experienced its fastest non-energy sector growth in almost two years in June, driven by surges in both existing and new business activities.
The Purchasing Managers’ Index (PMI) headline figure for Qatar reached 55.9 in June, up from 53.6 in May, with anything above 50.0 indicating growth in business activity. Employment also grew for the 16th month in a row, and the country’s 12-month outlook remained robust.
The inflationary pressures were muted, with input prices rising only slightly since May, while prices charged for goods and services fell, according to the Qatar Financial Centre (QFC) report.
This headline figure marked the strongest improvement in business conditions in the non-energy private sector since July 2022 and was above the long-term trend.
The report noted that new incoming work expanded at the fastest rate in 13 months, with significant growth in manufacturing and construction and sharp growth in other sectors. Despite the rising demand for goods and services, companies managed to further reduce the volume of outstanding work in June.
Companies attributed positive forecasts to new branch openings, acquiring new customers, and marketing campaigns. Prices for goods and services fell for the sixth time in the past eight months as firms offered discounts to boost competitiveness and attract new customers.
Qatari financial services companies also recorded further strengthening in growth, with the Financial Services Business Activity and New Business Indexes reaching 13- and nine-month highs of 61.1 and 59.2, respectively. These levels were above the long-term trend since 2017.
Yousuf Mohamed Al-Jaida, QFC CEO, said the June PMI index was higher than in all pre-pandemic months except for October 2017, which was 56.3. “Growth has now accelerated five times in the first half of 2024 as the non-energy economy has rebounded from a moderation in the second half of 2023,” he said.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
