Mubasher: Credit growth rate in Kuwait rose 5.2% year-on-year in the first quarter of 2019, supported by loans granted to both businesses and households, according to a report released on Saturday by the National Bank of Kuwait (NBK).
Deposits growth declined to 2.4% YoY in Q1-19 versus 3.2% YoY a year earlier after the government deposits went down 11.5% YoY.
“Lending to businesses rose 6.1% YoY in Q1-19, up from 5.2% YoY in Q4-18. This was driven mainly by a significant improvement in lending to real estate (4.9% YoY) and trade sector (3.9% YoY),” the report said.
Business confidence in the Kuwaiti market was boosted by the increase in average oil prices during the first three months of 2019.
Household borrowing levelled down to 5.6% YoY in Q1-19 from 6% YoY in the previous quarter, on the back of the sluggish growth in housing loans.
“Meanwhile, growth in consumer loans continued its upward trend to 7.8% YoY in Q1, the fastest pace in more than four years,” the NBK revealed.
Private deposits increased by 5.1% YoY in the three-month period ended 31 March, while government deposits dropped by 11.5% YoY during the same period.
