Kuwait - Mubasher: Kuwait's credit growth registered a strong upstick in June as it jumped to 8.1% year-on-year to record its largest monthly gain in six months.
Kuwait's total credit rose by KWD 754 million during June, said a recent report published by NBK Capital.
Healthy gains in lending for the purchase of securities and business credit, notably credit to the oil & gas and industry sectors, were behind the strong performance, noted the report.
Meanwhile, household debt saw its smallest gain in five years. Private deposits were down on the month, but were more than offset by a sizeable increase in government deposits.
Household lending added a net of KWD 21 million, its weakest gain in five years. The weakness coincided with the start of the holy month of Ramadan and the summer season. As a result, growth continued to moderate slowing to 10.2% y-o-y.
Growth in installment loans, the main source of household debt growth, moderated to 12.2% y-o-y, while shorter-tenor consumer loans continued to contract by 2.7% y-o-y, registering another small monthly decline. Nonbank financial companies saw a net increase in credit in June. The sector saw its thir
Nonbank financial companies saw a net increase in credit in June. The sector saw its third decent monthly gain this year, adding KWD 52 million.
NBK believes that Kuwait's credit sector is showing signs of ending more than five years of deleveraging, with indebtedness picking up by 3.2% y-o-y.
