Kuwait Listed Banks’ Results — YE‘25

Welcome to the Kuwait listed banks’ FY25 results—our annual analysis of the financial performance of Kuwait’s nine listed commercial banks.

This marks our second Kuwait-focused banking report, following the inaugural publication in April 2025.

In this edition, we compare banks’ financial performance for the years ending December 2024 and December 2025, using eight key performance indicators (KPIs): (1) total assets; (2) net profit; (3) share price; (4) return on equity; (5) return on assets; (6) cost-to-income ratio; (7) loans by stage; and (8) non-performing loan ratio.

We also highlight emerging trends likely to shape Kuwait’s banking sector over the next 12 months.

Since the introduction of global reciprocal tariffs in April 2025, coupled with rapid advances in Artificial Intelligence, ongoing voluntary oil production adjustments throughout 2025, and geopolitical tensions in the Middle East—the financial services ecosystem has remained in a constant state of flux. 

Kuwait’s banks, like other sectors, have had to continually monitor and recalibrate strategies in response to these external shifts.

Despite this uncertainty, Kuwait’s banks demonstrated resilience, achieving double-digit asset growth of 12.22%, rising from KD 113.93 billion in YE 2024 to KD 127.85 billion in YE 2025. Net profit showed a modest increase of 0.4%, from KD 1.56 billion in YE 2024 to KD 1.57 billion in YE 2025. Capital adequacy remained strong at 18.23%, well above the Central Bank of Kuwait’s minimum requirement of 14%.

Banks also recorded a slight reduction in non-performing loan ratios—an encouraging sign of improving asset quality and stronger risk management. In addition, cost-to-income ratios declined overall, driven by sustained investments in technology and automation.

FY 2025 marked a significant shift in the adoption of Artificial Intelligence across Kuwait’s banking sector. Nearly all banks announced the deployment of Generative AI and AI agents to enhance operational efficiency. The establishment of the Innovation Hub ‘Wolooj’ further underscores Kuwait’s commitment to AI-driven innovation. The Central Bank of Kuwait’s decision to cut the discount rate by 25 basis points to 3.50% in December 2025 provided a timely boost to economic activity and aligned domestic monetary policy with global trends.

As we finalize this report, Kuwait continues to navigate a regional conflict that has significantly impacted oil prices. While the long-term implications remain uncertain, the banking sector has so far maintained its resilience and growth momentum.

We hope this analysis helps refresh your perspective on Kuwait’s banking industry and encourages strategic reflection as the sector evolves.

We welcome your feedback, questions, or suggestions—please feel free to reach out to me or Salman.

Looking forward to hearing from you.

Enjoy the read.