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| Brief Excerpt: | ...Key Messages : Asset quality has been resilient despite low lending grow th. Capital ratios and liquidity levels remain strong. Profitability metrics continue to improve. Asset Quality: The average impaired loans ratio has been under 2% since 2017 due to high levels of w rite-offs and despite low er grow th. Generation of new impaired exposures remains low . Loan loss allow ances (4.3% of gross loans) covered impaired loans by a high 225% at end- 1H18. Kuw ait has yet to adopt IFRS 9 expected credit loss (ECL) provisioning requirements, w hich reduces asset-quality comparability against other markets. Fitch Ratings view s current high levels of loan loss allow ances as necessary given high concentration levels. Perform ance: Overall profitability (operating profit/risk-w eighted assets (RWAs)) increased in 2017 and 1H18 due to the banks' margins benefiting from rising interest rates. Costs and loan impairment charges (LICs) have been w ell controlled, although the latter may be on the rise... |
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| Report Type: | |
| Company(ies) | Gulf Bank KSCP
, National Bank of Kuwait SAKP
, Commercial Bank of Kuwait KPSC
, Burgan Bank S.A.K.
, Ahli United Bank K.S.C.P.
, Kuwait Finance House K.S.C.P
, Al Ahli Bank of Kuwait K.S.C.P.
, Kuwait International Bank K.S.C.P.
, Boubyan Bank KSCP
, WARBA Bank K.S.C.P. |
| Ticker(s) | ABK , ALMUTAHED , BOUBYAN , BURG , CBK , GBK , KFH , KIB , NBK , WARBABANK |
| Issuer | |
| Format: | | PDF |  |
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