• February 22, 2022

    Excel Model to assess interest rate impact on Kuwait banks

    Feel free to download our Interest Rate Sensitivity Model here and assess the impact for your assumptions. USA’s consumer price index rose 7.5% y-o-y in January 2022 which is the highest 12 month increase since 1982. The financial markets speculate for a hefty 50 basis points interest rate hike from the Federal Reserve next month, which would be first since 2018. There are fears that the US central bank will be more aggressive in its rate hikes. According to Goldman...

  • September 7, 2021

    Kuwaiti banks – Earnings report Q2’2021

    All major Kuwaiti banks reported their financial results for the second quarter of 2021. The Kuwait banking sector reported a healthy growth in net income after taxes for Q2’21 compared to that of Q2’20, mainly due to the reduction in provisions and impairment charges for bad loans that were recorded in the prior quarters due to higher expected credit losses. Due to historically low interest rates and increased provision for bad debts, profitability of the Kuwait banking sector was impacted...

  • March 9, 2021

    Kuwaiti banks – Earnings report 2020

    All major Kuwaiti banks reported their financial results for the fourth quarter of 2020 and that of the whole year. As expected, all the banks reported a reduction in net profits for 2020 compared to that of 2019 mainly due to the increase in provisions and impairment charges for bad loans caused by COVID-19’s disruption to the economy. Exhibit 1: Earnings scorecard - Kuwaiti banks Source: Boursa Kuwait, Refinitiv, Corporate Disclosures Kuwaiti Banks continue to clean up their balance sheets...