10 Best Banks In Kuwait
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The Banking System in Kuwait
The Kuwait Central Bank currently oversees Kuwait, which has 11 local commercial banks, including 5 Islamic banks. Additionally, Kuwait is home to a number of multinational corporations from around the world, including Citigroup, HSBC, and others.
The Industrial Bank of Kuwait also provides funding for projects connected to industry and agriculture. Two specialized government-owned banks also offer long- and medium-term financing.
They prioritize providing credit and savings bank services to their clients and guarantee a steady flow of money into the economy.
The Industrial Bank provides financing for industrial and projects related to agriculture.
Two specialized banks, owned by the Kuwaiti government, provide medium to long-term financing with a focus on credit and savings bank facilities to their clients or customers, ensuring a steady flow of funds throughout the entire economy.
There are three major broad categories under Kuwait’s central bank:
- Commercial Banks
- Islamic Banks
- Specialized Banks
Commercial banks are further divided into domestic and foreign branches.
National Bank of Kuwait, Gulf Bank, Bank of Kuwait and the Middle East, among others, are examples of local branches. As are Bank of BNP Paribas, Citibank, Qatar National Bank, Bank of HSBC, Doha Bank, and Bank of Bahrain, among others, for foreign branches.
Kuwait has a stable banking system because government-funded projects will continue to spur economic growth and will eventually increase bank business.
10 Best Banks in Kuwait
1. National Bank of Kuwait
The National Bank of Kuwait was established in 1952 and was Kuwait’s first local bank and shareholding company. Kuwait City is where it’s headquarters are located.
In 2018, it managed approximately KD27,427.94 million of the total assets and produced KD690.45 million in net interest income. The net income that year was roughly KD393.95 million.
It was the first regional bank and the first shareholding company in the Persian Gulf. The various services available include:
- Consumer & Private Banking
- Investment Banking
- Asset Management
- Islamic Banking
- International Centre
The bank reported $812.3 million in net profit and approximately 99 billion dollars in total assets in 2020.
2. Kuwait Finance House (KFH)
The Kuwait Finance House was established in 2002. Kuwait Finance House (KFH) is a fully owned subsidiary of Kuwait Finance House Kuwait. It is one of the best banks in Kuwait.
The first operating bank in Kuwait under Islamic law (laws according to Islamic tradition) was established by this institution in 1977. In 2016, its market capitalization was $8.2 billion and it is listed on the Kuwaiti stock exchange.
Additionally, $34.97 billion in deposits and $55.52 billion in total assets are managed by it. KFH offers goods and services in the banking, real estate, trade finance, investment portfolios, and other ancillary services sectors.
KFH underwent multi-faceted international expansion in the 1980s with independent banks in Malaysia, Bahrain, and Turkey. It also owns shares in other Islamic banks that conduct business in the Middle East, Southeast Asia, Europe, and the United States.
The bank offers services in treasury, retail banking and finance, investment portfolio, corporate banking, and capital markets products. Of the total assets, it has handled about RM9.142 billion.
In 2017, Kuwait Finance House produced net interest income of approximately RM509.44 million. The Kuwait Finance House’s net income that year was approximately RM5.19 million. It has about 9,000 employees spread across 500 branches.
3. Burgan Bank
The Burgan Bank was established in 1977. Burgan Bank operates a network of 24 branches and more than 100 ATMs. It is one of the best banks in Kuwait.
Of the total assets, it has managed about KD5.97 billion. In 2017, Burgan Bank’s net interest income was approximately KD118.94 million. The Burgan bank’s net income for the same period was roughly KD55.60 million.
This bank, a subsidiary of Kuwait Projects Company Holdings, was founded in 1977. It currently operates a network of 24 branches and more than 100 ATMs. It runs the following divisions:
- Corporate Banking
- Private Banking
- Retail banking
- Treasury and Investment Banking
Burgan Bank generated $693.29 million in revenue and $10 million in net profit in 2020.
4. Gulf Bank
Gulf Bank was established in 1960, and Safat is where its headquarters are. One of the best banks in Kuwait is Gulf Bank.
Customers of the bank include corporations, individuals, and institutions. Treasury, Commercial Banking, and other Investments segments make up its business.
About KD6.016 billion of the total assets have been handled by it. In 2018, Gulf Bank generated net interest income of approximately KD152.63 million. The same year, Gulf Bank’s net income was roughly KD56.74 million. It has roughly 56 branches and 1,500 employees total.
Gulf Bank provides services in retail, wholesale, Treasury, and financial services. Leading credit rating companies around the world have rated it “A.” The bank is headquartered in Safat and operates a network of 56 branches across the nation.
With a significant increase in net interest incomes, it reported a net profit of KD 12 million in 2020.
The bank also boasts a solid 16.59% capital adequacy ratio. Furthermore, it is dedicated to its corporate social responsibility program, which empowers society and promotes Kuwait’s history and culture.
5. Commercial Bank of Kuwait
The second-oldest bank in Kuwait, Commercial Bank of Kuwait was established in 1960 and has its headquarters there. It is one of the best banks in Kuwait.
Loans, credit cards, and deposits were among the services offered by commercial banks.
In 2017, it managed approximately KD4.39 billion of the total assets and produced KD93.59 million in net interest income. The net income that year was roughly KD55.50 million.
The bank’s primary areas of focus are project financing for businesses and consumers. In order to improvise digital banking across the nation, it also provides standard banking services like loans, deposits, and card facilities.
It has established itself as Kuwait’s top financier for important infrastructure, construction, and power projects.
The objective is to maximize shareholder funds, grow the customer base, and balance out its policies in order to benefit the neighborhood in which it operates. It made a net profit of 592 million Kuwaiti dinars in 2020.
6. AL Ahli Bank (ABK)
Kuwait City is home to the headquarters of AL Ahli Bank (ABK), which was founded in 1967. Retail, corporate, and international banking services are all offered by AL Ahli Bank (ABK). It is one of the best banks in Kuwait.
A reputable Retail and Commercial bank with numerous branches located throughout the Middle East, ABK was founded in Kuwait City in 1967. They provide the following services in addition to standard banking ones:
- NRI services
- Investment Management
- Mutual Funds
- Leasing Services
- Treasury
About QAR39.88 billion of the total assets have been handled by it. In 2017, AL Ahli Bank (ABK) generated approximately QAR834.44 million in net interest income.
The same year, AL Ahli Bank’s (ABK) net income was approximately QAR639.71 million. There are 56 branches in operation.
It reported $13 billion in total assets and a net profit of $153 million in 2016.
7. Industrial Bank of Kuwait
It was founded in Kuwait in 1973 by the Ministry of Finance, the Central Bank of Kuwait, and other sizable local industrial companies with the primary goal of fostering the growth of the regional industries.It is one of the best banks in Kuwait.
The company’s headquarters are in Al-Sharq, and it provides conventional and Islamic loans/credit facilities as well as Islamic asset management services to the industrial sectors.
The main goal was to support and develop local industries by offering services like conventional and Islamic asset management, Islamic loans/credit, and conventional facilities to the industrial sectors.
It managed about KW671.27 million of the total assets and produced about KW17.37 million in net interest income in 2017. The net income that year was approximately KW12.53 million. Around 221+ people work there.
Additionally, they focus on managing funds and portfolios as well as conventional and Islamic investments in a range of industries. It reported total assets of KWD 685 million and a net profit of KWD 8.8 million in 2019.
They offer medium- and long-term financing for the country’s industrial units’ establishment, growth, and modernization. To satisfy the working capital requirements of its industrial clients, it also provides a comprehensive array of commercial banking and treasury products.
8. International Bank of Kuwait
Established in 1973, Kuwait’s first Islamic bank is a specialized institution governed by the Central Bank of Kuwait and traded on the Kuwait Stock Exchange. It is one of the best banks in Kuwait.
The bank provides a range of banking services, including credit cards and direct investments. It runs a number of segments, including:
- Retail Banking
- Commercial and International
- Fund Management
- Institutional Banking
- Investment Management
- Islamic Banking services for Corporate Customers
The bank reported a net profit of $60 million for 2016.
9. Boubyan Bank
Islamic banking institution Boubyan Bank was founded in 1973. It is one of the best banks in Kuwait.
The bank is divided into four segments, and its main business ventures are accepting deposits, establishing investment funds, trading in real estate, and other forms of Islamic transactions.
A Kuwaiti Islamic bank with a paid-up capital of about $700 million was founded in 2004. This bank offers both individual and business clients a range of services, making it one of Kuwait’s emerging markets.
Accepting deposits, buying and selling real estate, setting up investment funds, and engaging in other Islamic Transactions are the main activities:
- Mudaraba [Trust Financing Contract]
- Investment Agency Contract
- Leasing
- Murabaha [Interest bearing loan]
- Islamic Asset management
- Direct investment in various sectors
In 2018, Boubyan Bank generated net interest income of about KD120.30 million. The same year, Boubyan Bank’s net income was roughly KD56.210 million.
The bank had a staff of about 250 people and earned a net profit of KWD 34.42 million.
10. Kuwait’s Ahli United Bank
This bank, a conventional organization established in 1971, operates in the following markets:
- Retail Banking
- Corporate Banking
- Treasury & Investment
- Investment Funds
110 branches are overseen by the bank in the UK, the Middle East, and other countries.
With its headquarters in Safat, Kuwait City, the second-safest Islamic bank in Kuwait was deemed to have a net profit of $14.26 billion in 2016. It also provides life insurance services and fund management. The bank is one of the best banks in Kuwait.
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