Hermes expects Kuwaiti bank profits to grow 2% in the third quarter

Hermes expects Kuwaiti banks' profits to grow by 2% in the third quarter. Loan portfolios of the local banking sector rose 9% year on year over nine months. According to the report, external lending supported the strong Kuwaiti credit growth recorded in the first half. The concentration of retail loans among citizens employed by the government helped keep asset quality resilient. The slight rise in the cost of international deposits is expected to have only a limited impact on net interest.