• The capital adequacy ratio remained strong at 18.23%, exceeding the minimum required level.
• Adopting artificial intelligence technologies and regulatory transformations will contribute to reshaping the Kuwaiti banking sector in 2026.

Kuwait, as an extension of its comprehensive performance review issued in April 2025, KPMG Kuwait has released its new annual report on Kuwaiti listed banks, which provides an analysis of their financial results for the year ending December 31, 2025. The report is titled “Results of Kuwaiti Listed Banks – 2025” and provides a comparative analytical assessment of the sector’s performance between 2024 and 2025.

The Kuwaiti banking sector demonstrated remarkable resilience, recording double-digit growth in total assets of 12.22%, rising from KD 113.93 billion at the end of 2024 to KD 127.85 billion at the end of 2025. Net profits also increased by 0.4% to KD 1.57 billion, compared to KD 1.56 billion at the end of 2024. The capital adequacy ratio remained strong at 18.23%, clearly exceeding the minimum requirement of 14% set by the Central Bank of Kuwait, thus confirming the robustness of the capital base and prudent risk management practices in the sector.

The report also highlighted a slight but significant improvement in the non-performing loan ratio, which declined from 1.47% at the end of 2024 to 1.38% at the end of 2025, reflecting an improvement in credit discipline across the sector and enhancing overall financial stability.

Commenting on the sector’s performance, Bhavish Gandhi, Partner and Head of Financial Services at KPMG Kuwait, said: “The annual report indicates that banks in Kuwait have become more resilient despite a series of developments this year, including global tariffs, voluntary oil production cuts, and escalating geopolitical tensions in the region – factors that could have impacted growth prospects. He added that bank management continues to monitor these changes while maintaining its focus on growth and strengthening the sector’s resilience.”

The KPMG report conducted an in-depth analysis of bank performance based on an analysis of eight key performance indicators ( KPIs ): (1) Total assets, (2) Net profit, (3) Share price, (4) Return on equity (ROE) , (5) Return on assets (ROA) , (6) Cost-to-income ratio, (7) Loan tiering, and (8) Non-performing loan ratio ( NPL ), with the aim of identifying trends that may contribute to shaping the banking sector in Kuwait.

The report also highlights a number of trends that may contribute to shaping the banking sector during 2026, most notably the acceleration of investment in artificial intelligence ( AI ) technologies, as most banks, including the Central Bank of Kuwait, have announced, or are about to announce, AI-based solutions, indicating a structural shift towards advanced digital transformation.

In this context, Salman Bin Khalid, Partner and Head of Audit at KPMG Kuwait, said: “Banks have witnessed the significant impact of artificial intelligence in enhancing operational efficiency, and there is no going back. However, the next stage should see artificial intelligence move from being a purely operational tool to being a strategic enabler to support decision-making. We have observed this development in banks across the region, where its benefits are becoming increasingly evident.”

In addition to technological advancements, the report points to the direct impact of ongoing geopolitical tensions in the Middle East on Kuwait, which have strained the supply and demand balance in the oil market and driven prices higher. The report asserts that this temporary “oil shock,” as experts have termed it, may lessen as the conflict subsides, but its long-term repercussions could differ from initial expectations.

The report also addresses the regulatory factors expected to shape the sector during 2026. The implementation of key policies, including the Mortgage Act, the Public Debt Act, International Financial Reporting Standard 18 ( IFRS 18 ), and the strengthening of anti-money laundering regulations, are expected to affect the operating environment and financial reporting practices throughout the year.

While the long-term impact of these developments remains uncertain, the report indicates that banking decision-making processes will undoubtedly be affected by these regulatory changes. The sector's performance during the first half of 2026 will provide an early indication of how these factors will manifest.

For the full report, please visit: kpmg.com/kw

-I finish-

#Company Data

Disclaimer regarding the content of press releases
The content of this press release is provided by a third-party provider. We do not assume any responsibility for, nor do we have any control over, such content. This content is provided on an "as is" and "as available" basis and is not edited in any way. Neither we, nor our affiliates, will be liable for the accuracy, endorsement, or completeness of any opinions, views, information, or materials contained in this content.
This press release is provided for informational purposes only; the content does not constitute legal, investment, or tax advice, nor does it offer any opinion on the suitability, value, or profitability of any particular portfolio or investment strategy. Neither we nor our affiliates will be liable for any errors or inaccuracies in the content, or for any actions you take based on that content. You expressly agree and acknowledge full responsibility for your use of the information contained in this press release.
To the extent permitted by applicable law, Refinitiv, its parent company, subsidiaries, affiliates, relevant shareholders, directors, officers, employees, agents, advertisers, content providers, and licensors (collectively, the 'Refinitiv Parties') shall not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive, or exemplary damages; This includes, but is not limited to, losses of profits, savings, or revenues, whether due to negligence, tort, contract, or other theories of liability, even if the parties to Refinitiv were advised of the possibility of any such damages or losses occurring or actually anticipated them.