Local banks operating in Kuwait are expected to achieve an increase of 7% in profits during the third quarter of 2018 compared to the same period in the previous year, according to EFG Hermes’ recent report.
On a quarterly basis, the Kuwaiti banks are forecast to decline 1% in the quarter ended on 30 September compared to Q2 due to an exceptional income.
The Egyptian investment bank noted that applying the IFRS9 will not have an impact on the Kuwaiti lenders’ provisions when compared to risks and non-performing loans (NPLs).
The impact of applying the IFRS9 is expected to show in the budgets of some banks during the fourth quarter of 2018 or the first quarter of 2019.
EFG Hermes expected the loan growth in Kuwaiti banks to edge up 0.3% in Q3-18 when compared to Q2 the same year.