KUWAIT -- The annual Financial Report released by the Central Bank of Kuwait on Thursday disclosed that the banks shareholders dividends grew by 25 percent on annual basis reaching KD 1.5 billion (USD 5.9 billion) in the end of the year 2023.

The continuous profit earning in the sector was affected with high interests improvement of the assets quality, while the allocations declined by 15 percent, as compared to the year 2022.

The banking sector assets grew by 3.1 percent in the end of 2023, reaching KD 110.4 billion (USD 364 billion). The sector profitability was affected with hike of the noticeable net interest margin amounting to 2.7 percent, while interest free profits rose accounting 32 percent of the whole sector, buoyed by the increase in investments earnings, by 126 percent.

The earnings; improvement over the past year reflected on the profitability indexes and financial efficiency. The average asset proceeds rose by 1.5 percent and that of the equity by 11.1 percent, also in contrast to 2022.
The financial sector maintained its bullish financial solvency, where capital adequacy climbed by 19.9 percent, due to the banks' profits and rose of capital of some.

The loans portfolio grew by 2.6 percent reaching KD 69.2 billion (USD 228.3 billion), buoyed by growth of the funding granted to mega companies. Meanwhile, the local currency maintained the lion's share in the portfolio 64.2 percent.
Non-performing loans maintained the level at 1.4 percent in 2023, maintaining the level of the two previous tears, while coverage of these loans continued to rise, hitting 312 percent in the end of the year.

The sector's deposits continued to rise last year reaching KD 73.5 billion (USD 245.5 billion), a 4.4. percent proportion on annual basis, while the foreign assets grew accounting to 32.5 percent of the overall assets amid expansion of the banks' external operations.

The banks have continued to depend on the private sector's deposits as a main source of funds, with private sector's depositing accounting to 56.5 percent of the total deposits. 

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