“EFG Hermes” revealed that loan growth in Kuwait remained strong in February at 6.4 percent year-on-year, but slowed versus 2022.
According to a report by “Hermes”, total loan growth in February slowed to 6.4 percent year-on-year, following strong average loan growth of 10 percent year-on-year in 2022. While total deposits increased 4 percent year-on-year in February (+1 percent year-to-date), private sector deposits (79 percent of total deposits at the banking system level) increased by 6 percent year-on-year.
Against the backdrop of higher interest rates, Hermes indicated that time deposits have driven the growth of total deposits over the past few months, noting that the share of demand deposits in total deposits reached 23 percent in February, down from an average of 25 percent in 2022. The share of demand deposits and savings and savings account deposits (CASA) fell to 38 percent in February, down from an average of 41 percent in 2022.
Source (Al-Rai Kuwaiti Newspaper, Edited)
