Friday, October 22, 2021

KFH: The highest increase in personal facilities in 6 years… in August

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– 382 million dinars in new financing for the economic sectors in 30 days

The Kuwait Finance House (KFH) explained that the credit balance granted by Kuwaiti banks in some economic sectors rose at the end of August by about 3.8 percent, compared to an annual growth close to that at the end of July, according to data from the Central Bank of Kuwait.

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In a report, KFH indicated that credit exceeded the barrier of 41.2 billion dinars in August, compared to 40.9 billion in July and 39.9 billion in August 2020, noting that the economic sectors obtained financing by about 382 million in August, at a time when banks attracted Deposits by about 663 million during the month, while deposits decreased by 2.4 percent in August, recording a decline for the fifth consecutive month, and the annual credit growth continued to outpace deposits, after deposits recorded greater growth than credit in the last five months of 2020.

The report indicated that the total granted credit improved on a monthly basis by 0.7 percent by about 297 million dinars, while deposits rose by 1.1 percent by about 492 million in August on a monthly basis, and the balances of personal credit facilities rose on an annual basis by about 1.7 billion, or by 10.2 percent. percent in August, registering the highest increase in nearly 6 years, to exceed the 18.4 billion barrier, driven by the increase in consumer credit and installment loans.

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Real estate and construction

The report noted that the credit granted to the real estate and construction sectors increased slightly, amounting to half a percent, at about 5 million dinars, with the credit balance for these sectors approaching 11.1 billion, while the credit granted to the industrial sector increased by about 8.9%, or 184 million dinars, to 2.3 billion, and credit balances rose Crude oil rose to about 2.1 billion for the second time, with a growth of 251 million and 13.8 percent, which is a high level of growth in two years after the sector’s loans increased at rates of more than 30 percent before this period.

He added, “Personal credit facilities, in addition to those directed to the real estate and construction sectors, constitute the largest share of the volume of credit facilities, and the share of personal credit facilities is still at its highest levels, reaching 44.7% in August compared to 44.3 percent in July of the total credit granted, and it is higher than the share of 42.1 percent in July 2020, while the share of the real estate and construction sectors together decreased to 27 percent in August, compared to 28 percent of the total credit granted in the same month last year, and thus the share of the three sectors stabilized at about 71.6 percent of the total credit granted in August and July 2021 , while it is slightly higher than the share of 70 percent in August 2020.”

Installment and consumer

The report pointed out that the installment facilities, which represent the largest volume of credit facilities granted to individuals, stabilized at 74.2 percent during the past three months, while it is slightly higher compared to the share of 73.5 percent in August 2020, while facilities directed to the purchase of securities constituted about 14.3 percent of the total. Personal credit facilities in August and July, which is lower than 15 percent in August of last year.

As for consumer finance, it accounted for about 9.4 percent of personal facilities in August, unchanged from the same month last year. The report stated that the installment credit facilities exceeded the barrier of 13.6 billion dinars at the end of August, increasing by 1.4 billion and at a rate of 11.2 percent annually, i.e. in the same value for the second month in a row, which is the second highest increase in nearly 6 years, driven by the demand of individuals to obtain financing for the purchase of private housing. Especially in new cities.

He continued, “The share of installment credit rose to its highest level when it represented 33.1 percent of total credit, while on a monthly basis, it rose by about 196 million in August, or 1.5 percent from July, which recorded a slightly lower monthly growth. As for personal facilities directed to the purchase of securities, it amounted to About 2.6 billion dinars, an increase of 4.4 percent on an annual basis in August and 1.4 percent on a monthly basis, and thus its share stabilized, recording 6.3 percent of total credit at the end of August, at its lowest level compared to the previous month and the same month last year.

The report indicated that the credit granted to consumer personal finance exceeded 1.7 billion dinars by the end of August, recording an annual increase rate of 11.4 percent, while the volume of consumer personal loans increased by 4.2 percent from its volume in July, which rose by 1.6 percent on a monthly basis.

The second-highest decline in “trade” loans since 2003

The KFH report stated that the credit granted to “other” sectors rose by about KD 90 million, or 2.9 percent, to close to KD 3.2 billion (representing 7.7 percent of the total credit), while the facilities directed to the trade sector declined on an annual basis by about 454 million. dinars by 12.6%, which is the second highest decline since 2003, bringing its balance to 3.1 billion dinars (representing its lowest share of total credit of 7.6%), and the credit balance to financial institutions other than banks fell to the lowest level, approaching 923 million dinars, a low By about 277 million dinars, at an unprecedented annual rate of 23.1 percent, and in the public services sector, the credit granted to it decreased on an annual basis to 120 million dinars, at a rate of 4.8 percent, with a value of 6.1 million dinars.

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