Kuwait’s banking sector, comprising nine banks, recorded a modest increase in net profits during the first quarter of 2026, reaching approximately 409.4 million dinars after taxes and minority rights, according to Al-Shall Weekly Report.
The figure represents an increase of 4.1 million dinars, or around 1 percent, compared to 405.2 million dinars recorded during the same period in 2025. When compared with the fourth quarter of 2025, sector profits rose by 11.7 percent from 366.4 million dinars, reflecting improved quarterly performance.
The report noted that six banks posted higher profits during the period, while three banks recorded a decline. Total provisions set aside by banks increased significantly to 112.3 million dinars, up from 94.6 million dinars in the corresponding period last year, marking an increase of 17.7 million dinars, or 18.8 percent.
Despite global and local economic uncertainties, the report said the sector continues to demonstrate stable performance supported by solid fundamentals.
Conventional banks recorded combined profits of approximately 192.2 million dinars, accounting for 46.9 percent of total sector earnings, though this reflects a decline of 2.9 percent year-on-year. Islamic banks, meanwhile, generated 217.2 million dinars in profits, representing 53.1 percent of total earnings and registering a 4.7 percent increase.
Key financial indicators showed mixed trends. The sector’s annualized price-to-earnings ratio rose to around 19 times, compared with 18.5 times a year earlier. However, both return on assets and return on equity saw slight declines, reaching approximately 1.2 percent and 10.8 percent respectively.
At the individual bank level, Kuwait Finance House led the sector with profits of about 176.5 million dinars, representing 43.1 percent of total banking profits and a 5 percent increase year-on-year. The National Bank of Kuwait followed with profits of approximately 135.5 million dinars, accounting for 33.1 percent of the sector total and posting a 1 percent increase.
