Kuwait’s financial system adequately mirrors that of the entire Middle East. While some areas have shown resilience, others remain weak and risk weighing down their countries' banking systems as a result. However, in Kuwait positive signs such as a government-approved $100bn development plan are providing respite for a sector that is still reeling from the global crisis.
Although Kuwaiti banks were profitable in the first half of 2010, performances for the whole of 2010 varied widely. While some banks reported robust profits and adequate asset quality ratios, others reported continued low profitability due to high non-performing loan (NPL) rates and weak asset quality.