Kuwait's Bank Deposits Declined For The First Time In 21 Years In 2021

According to the Central Bank of Kuwait's monthly statistical data, total deposits were 44.561 billion dinars at the end of December, down 714 million dinars, or 1.58 percent, from their level at the end of 2020, when it was 45.275 billion dinars, marking the first annual decline since 1999, when it started falling 34 million dinars, or 0.46 %, from its 1998 level, reaching 7.043 billion dinars.

Total deposits dropped by about KD 259 million, or 0.58 %, in December compared to November, as government deposits fell by 32 million (-0.43%) to 7.372 billion dinars, while total sector deposits fell by about 226 million (-0.6%) to 37.189 billion dinars at the end of last year, according to the Al-Rai daily.

On an annual basis, government deposits decreased by around KD 571 million, or 7.19 percent, in December compared to the end of 2020, while private sector deposits fell by about 143 million (-0.38 %).

At the end of last December, total credit facilities provided by local banks totaled 42.286 billion dinars, a gain of around 161 million (+0.38 percent) on a monthly basis, and 2.52 billion (+6.34 percent) for the entire year 2021. Its highest annual growth since 2015, when credit facilities increased by 8.46 percent over 2014 levels, including personal facilities, which increased by 2.181 billion dinars (+12.64 %) last year to reach 19.431 billion at the end of December, an increase of about 211 million dinars (+1.1 %) on a monthly basis.

Installment loans increased by 139 million dinars (+0.98%) on a monthly basis and 1.68 billion dinars (+13.22%) in total in 2021, to reach 14.391 billion dinars at the end of December, while consumer loans increased by about 26 million (+1.43%) on a monthly basis and 238 million (+14.81%) in total in 2021, to reach 1.845 billion dinars at the end of December.

The loans securities are increased by 52 million dinars (1.88%) in December compared to November and by 233 million dinars (+ 9.03%) in a year, reaching 2.812 billion dinars at the end of December 2021.

Credit facilities for financial entities other than banks (investment businesses) totaled 1.009 billion dinars at the end of December, down 2.98 % on a monthly basis but up 2.83 % on an annual basis.

Loans to the commerce sector dropped by 9.28 percent year on year to 2.971 billion dinars at the end of December, while loans to the industrial sector increased by 15.81 % to 2.381 billion dinars.

Construction industry loans totaled 1.696 million dinars at the end of last December, down 10.17 % from the end of 2020, but up 0.47 % on a monthly basis.

Although loan facilities given to the real estate industry declined by 1.23 % compared to November, they are expected to climb by roughly 1% compared to the previous year, reaching 9.317 billion dinars by the end of 2021.

Loans in the crude oil and gas industry increased 14.27 % year over year, reaching 2.138 billion at the end of December.

The balance of public debt instruments was at 800 million dinars at the end of December, down 5.9% on a monthly basis from 850 million dinars in November, and down 23.8 % from its peak in December 2020, when it was 1.05 billion dinars.

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