By: Mohamed Farouk
Mubasher: Listed Kuwaiti banks’ assets amounted to $280 billion (KWD 84.956 billion) over the nine-month period ended 30 September, accounting for 75% of the total assets of bourse-listed companies, according to National Bank of Kuwait’s (NBK) research division.
In Kuwait, banking sector represents around 60% of Boursa Kuwait’s market capitalisation.
For the broader GCC region, banking sector is one of the most importance lending entities, given that most of the borrowers’ liabilities were bank loans.
When examining capital markets in the region, one should not underestimate the significance of banking sector, which dominates a substantial portion of overall market value, according to the NBK Capital report received by Mubasher.
Banking sector largely contributed the overall profits and assets of the capital markets in the Gulf, with banks generating roughly 50% of the collective profits of major listed companies in Saudi Arabia, the UAE and Kuwait.
Net revenues from financing represented 75% of the overall upper line of banks in the region, the report showed.
Loans granted by Gulf banks to companies accounted for the biggest portion of total loans, while consumer loans are more tilted to the upside.
For instance, consumer loans, including individual loans, car loans, credit cards, were nearly 35% of total loans in Saudi Arabia, 10% of which were mortgage loans.
Translated By: Islam Hisham