Source: Kuwait News Agency
The total assets of Kuwaiti banks listed in the Kuwait Stock Exchange witnessed an increase of 2.5 percent since the start of January until the end of June 2011, amounting to KWD 46,8 billion (USD 169 billion), An Asset Management Company (KAMCO) report said on Wednesday. The report noted that the banking sector dropped 0.9 percent after a gain of 3.4 percent in the first quarter of 2011. The drop in assets in the second quarter of the same year was due to a low of liquidity of 7.7 percent, amounting to KWD 643 million (USD 2,3 billion). The impact of loan portfolio was absent in the total development of banking sector since these assets have not witnessed any gain but instead they have stabilized at KWD 27,8 billion (USD 100 billion) from March to June 2011. Banking sector was able to enhance its market capitalization and maintain a strong shareholders’ equity, which increased by 1.7 percent to reach KWD 5,9 billion (USD 21,4 billion). The Shareholders’ equity shed 0.6 percent driven by good profits, amounting to KWD 295 million (USD 1,1 billion).
Kuwaiti banks’ consolidated statements of shareholders’ equity growth during the second quarter of 2011 came after a decrease of 2.2 percent in the first quarter of 2011 due to a KWD 253 million (USD 909 billion) cash profit distribution to shareholders by 5 out of 9 banks. Most of banks were able to increase their shareholders’ equity base during the second quarter of 2011. National Bank of Kuwait (NBK) held the strongest equity base, reaching KWD 2.20 billion. Kuwait Finance House (KFH) came second with KWD 1.27 billion equity base at the end of June 2011. In an analysis of loan portfolio given by Kuwaiti banks showed that credit policies in giving loans were still “conservative”.