Overview of Banks in Kuwait

Presently, Kuwait is under the supervision of the Kuwait Central Bank with 11 local commercial banks, including 5 Islamic banks. In addition, there are various global MNC’s (Multinational Corporations) operating in Kuwait, such as Citigroup, HSBC, etc. Furthermore, the Industrial Bank of Kuwait offers finance for industrial and agricultural-related projects. In addition, two specialized government-owned banks provide medium and long-term financingLong-term FinancingLong term financing means financing by loan or borrowing for a term of more than one year by way of issuing equity shares, by the form of debt financing, by long term loans, leases or bonds, done for usually extensive projects financing and expansion of the company.read more. They focus on credit and savings bank facilities to its customers and ensure a smooth money supply in the economy.

Structure of Banks in Kuwait

The banking structure in Kuwait can be shown with the help of the following diagram:

source: https://www.capstandards.com

List of Top 10 Banks in Kuwait

  • National Bank of KuwaitKuwait Finance House (KFH)Burgan BankGulf BankCommercial Bank of KuwaitAL Ahli Bank (ABK)Industrial Bank of KuwaitKuwait International BankBoubyan BankAhli United Bank Kuwait

Let’s explain each of these banks in detail –

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#1. National Bank of Kuwait

It was established in 1952 as the first local bank and the first shareholding company in the Persian Gulf region, with its headquarters in Kuwait city. The various services offered are:

  • Consumer & Private BankingPrivate BankingPrivate banking refers to a type of banking and financial service offered by certain banks only to high-net-worth individuals (HNWIs). Clients opting for this service are individually assigned a financial representative who personally takes care of their banking needs.read moreInvestment BankingAsset ManagementIslamic BankingInternational Centre

In 2020, the bank reported total assets of about 99 billion U.S. dollars and a net profit of $812.3 million.

#2. Kuwait Finance House (KFH)

This institution was established in 1977 in Kuwait as the first operating bank as per the Islamic Sharia (laws according to Islamic tradition). It is listed on the stock exchange of Kuwait with a market capitalizationMarket CapitalizationMarket capitalization is the market value of a company’s outstanding shares. It is computed as the product of the total number of outstanding shares and the price of each share.read more of $8.2 billion in 2016. It also manages total assets of $55.52 billion and deposits of $34.97 billion. KFH  offers products and services in Banking, Real Estate, Trade Finance, Investment Portfolios, and other ancillary services.

In the 1980s, KFH went through multi-activity international expansion with independent banks in Turkey, Bahrain, and Malaysia. Additionally, it has stakes in other Islamic banks with investment activities in the U.S., Europe, Southeast Asia, and Middle Eastern regions.

#3. Burgan Bank

This bank was established in 1977 as a subsidiary of Kuwait projects Company holdings with a network of 24 branches and more than100 ATM’s. It operates the following segments:

  • Corporate BankingPrivate BankingPrivate BankingPrivate banking refers to a type of banking and financial service offered by certain banks only to high-net-worth individuals (HNWIs). Clients opting for this service are individually assigned a financial representative who personally takes care of their banking needs.read moreRetail bankingRetail BankingRetail banking or personal banking refers to the financial services offered by the financial institutions exclusively to the individual clients. The consumer banking provides personal loan, savings account, debit cards, credit cards, locker, etc.read moreTreasury and Investment Banking

In 2020, the annual revenue of Burgan Bank was $693.29 million, with a net profit of USD 10 million.

#4. Gulf Bank

Established in 1960, Gulf Bank is one of the top banks of Kuwait, offering services of Consumer Banking, Wholesale Banking, Treasury, and Financial Services. It is ranked ‘A’ by leading credit rating agencies worldwide. The bank has its headquarters in Safat, managing a network of 56 branches around the country.

In 2020, it recorded a net profit of KD 12 million with a significant improvement in net interest incomes. The bank also enjoys a strong capital adequacy ratioCapital Adequacy RatioThe capital adequacy ratio measures the bank’s financial ability to pay off its obligations. The capital-to-risk weighted assets ratio (CRAR) is evaluated as the percentage of the bank’s capital to its risk-weighted assets. Bank’s capital is the aggregate of tier 1 and tier 2 capital.read more of 16.59%. Additionally, it is strongly committed to its corporate social responsibility program through which it empowers society and promotes the heritage and culture of Kuwait.

#5. Commercial Bank of Kuwait

It is the second oldest bank established in June 1960. The primary focus of the bank is towards retail and commercial project financing. In addition, it offers regular banking services such as loans and deposits and card facilities to improvise digital banking across the country.

It has emerged as a lead financer towards power, construction, and critical infrastructure projects in Kuwait. The aim is to maximize shareholders’ funds, enlarge its customer base while also balancing out its policies to serve the community in which it operates. In 2020, it recorded a net profit of 592 million Kuwaiti dinars.

#6. AL Ahli Bank (ABK)

Founded in 1967 and located in Kuwait city, ABK is an established Retail and Commercial bank with multiple branches spread across the Middle East. In addition to the regular banking services, they also offer:

  • NRI servicesInvestment ManagementMutual FundsLeasing ServicesTreasury

It recorded a Net profit of $153 million for 2016 and Total Assets of $13 billion.

#7. Industrial Bank of Kuwait

It was established in 1973 in Kuwait through the Ministry of Finance combined with the Central Bank of Kuwait and other large local industrial firms with a primary objective to blossom the local industries. The headquarters are in Al-Sharq and offer conventional and Islamic loans/credit facilities to the industrial sectors and Islamic asset management services.

They also specialize in Portfolio and Fund managementFund ManagementFund management is the process of a company taking a person’s, company’s, or another fund management company’s financial assets (generally high net worth individuals) and investing them in companies that use those funds as an operational investment, financial investment, or any other investment in order to grow the fund.read more and conventional and Islamic investments made in various sectors. In 2019, it recorded a net profit of KWD 8.8 million and total assets of KWD 685 million. In addition, they provide medium and long-term financing for the establishment, expansion, and modernization of industrial units in the country. It also offers a full range of commercial banking and treasury products to meet the working capitalWorking CapitalWorking capital is the amount available to a company for day-to-day expenses. It’s a measure of a company’s liquidity, efficiency, and financial health, and it’s calculated using a simple formula: “current assets (accounts receivables, cash, inventories of unfinished goods and raw materials) MINUS current liabilities (accounts payable, debt due in one year)“read more needs of its industrial customers.

#8. Kuwait International Bank

An Islamic bank in Kuwait was established in 1973 and is a specialized bank regulated by the Central Bank of Kuwait and listed on the Kuwait Stock Exchange. The bank offers several banking services including direct investments and credit cards. It operates various segments such as:

  • Retail BankingCommercial and InternationalFund ManagementInstitutional BankingInvestment ManagementIslamic Banking services for Corporate Customers

For 2016, the bank recorded a net profit of $60 million.

#9. Boubyan Bank

It is a Kuwait Islamic bank established in 2004 with approximately $700 million paid-up capital. One of the emerging markets in Kuwait, this bank provides a variety of services to individuals and corporate customers. The main activities include accepting deposits, trading in real estate, and establishing investment funds and other kinds of Islamic Transactions:

  • Mudaraba [Trust Financing Contract]Investment Agency ContractLeasingMurabaha [Interest bearing loan]Islamic Asset managementDirect investment in various sectors

With an employee strength of around 250, the bank recorded a net income of KWD 34.42 million.

#10. Ahli United Bank Kuwait

This bank is a traditional unit founded in 1971 operating in the following segments:

  • Retail BankingCorporate BankingTreasury & InvestmentInvestment Funds

The bank manages 110 branches across the Middle East and the United Kingdom. The net profit for 2016 was $14.26 billion and was also declared as the second safest Islamic bank in Kuwait, with its headquarters in Safat, Kuwait city. Additionally, it also offers fund management and Life Insurance Services.

We hope you liked this guide to top banks in Kuwait. If you are looking forward to making a career in Banking, then you can check out some of the awesome resources –

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