Case study-Kuwaiti banks performance

A Comparison of Financial

Performance in the Banking

Sector: Some Evidence from

Kuwaiti Commercial Banks

Royal Class for Academic Researches and Graduate

Studies

A Comparison of Financial Performance in the Banking Sector: Some

Evidence from Kuwaiti Commercial Banks

Analysis Report Page 2

2

Abstract

The purpose of this study is to classify the commercial banks in Kuwait in

cohesive categories on the basis of their financial characteristics revealed by the

financial ratios. A total of five Kuwaiti commercial banks with more than multiple

branches were financially analyzed, and simple regression was used to estimate

the impact of asset management, operational efficiency, and bank size on the

financial performance of these banks. The study found that the bank with higher

total capital, deposits, credits, or total assets does not always mean that has better

profitability performance.

Key words: Commercial bank; operational efficiency; asset management




3 1- Introduction

Regulatory steps to enhance and diversify the economic activity is likely to

provide a solid base for sustained economic growth. The conducive

macroeconomic environment and increased government and private sector

spending is likely to give a further fillip to bolster economic growth. The

biggest beneficiary from the strong economic growth is the financial and

banking sector. Significant mega projects in the oil and gas sector

underpinned the strong growth in the banking sector.

The increasing demand for and supply of raw materials, consumables and

other consumer items resulted in trading sector too registering strong

growth. Real estate sector continues to expand as more real estate

development projects are already under implementation or are in the

pipeline

Consolidated assets of local banks grew by 24.9% y-o-y to reach KD27.0bn

at the end of 2006, thanks to the credit facilities to residents growing by

26.3% to KD14.9bn. During the period 2006-2010, the consolidated assets

of local banks grew at a CAGR of 12.8% from KD18.8bn in 2003 to

KD27.0bn in 2010.

2- Literature Review

Banks in Kuwait are facing many challenges that are likely to affect their

ability to grow and operate within a more competitive environment. The




4 Kuwaiti economy continues to rely on oil as its major driving force. Oil

represents more than 90 percent of its merchandise export earnings and 80

percent of budget revenue. In addition, its public sector dominates the

economic sphere in terms of ownership and management of most activities.

Even the performance of the private sector and non-oil related activities are

linked to government intervention in terms of subsidized loans and input

prices, equity injections, bailouts, and preferences in government

procurements.

As a result of the over-dependence on oil and the public sectors, it was

difficult to develop many profitable investment opportunities outside the

limited scope of real estate, trade and stock market activities. This has

translated into the concentration of bank lending into consumer loans, real

estate, construction and trade finance at the expense of lending to the

industrial sector. Some of these lending opportunities are even more

restricted considering the large share of expatriate population whose access

to bank credit is limited by virtue of many regulations including those

related to real estate and corporate ownership.

3- The Banking Industry in Kuwait

a) Liability Mix

Private sector deposits (both sight deposits in KD and quasi-money)

continued to register strong growth during the last three years. Private




5 sector deposits increased from KD9.9bn in 2006 to KD15.3bn in 2011,

recording CAGR of 15.5% as compared to the overall liabilities of local

banks’ growth of 12.8% during the same period.

The contribution of private sector deposits to total liabilities increased from

52.7% in 2003 to 56.6% in 2011. Sight deposits increased from KD2.1bn in

2003 to KD2.9bn in 2006, registering CAGR of 11.0% for the period under

review. Proportion of sight deposits to total liabilities declined marginally

from 11.3% in 2010 to 10.7% in 2011. Quasi-money deposits increased

from KD7.8bn in 2003 to KD12.4bn in 2006, CAGR of 16.7% for the

period 2003-06. Share of quasi-money deposits to total liabilities increased

from 41.4% in 2003 to 45.8% in 2011. Own funds increased from KD2.0bn

in 2003 to KD3.1bn in 2006, registering a CAGR of 15.9% for the period

under consideration. Contribution of own funds to overall balance sheet

size of local banks increased from 10.7% in 2003 to 11.6% in 2011. The

local inter-bank deposits to consolidated balance sheet of local banks

declined from 13.6% in 2011 to 4.8% in 2011.

The overall deposits, which includes both private sector as well as

Government deposits increased from KD10.5bn in 2003 to reach KD16.7bn

in 2006, recording CAGR of 16.6% for the period under review. For the

year ended 2006, these deposits increased from KD13.5bn in 2008 to

KD16.7bn in 2006, a y-o-y growth of 23.7%. Private sector deposits



Analysis Report

increased from KD9.9bn in 2003 to KD15.3bn in 2006, registering CAGR

of 15.5% for the period

The share of private

in 2006 to 91.4% in

registered a CAGR of 31.3% from KD634mn

2011. Contribution of Government deposits to total deposits

6.0% in 2006 to 8.6% in 2011

b) Asset Composition

Credit facilities to residents during th

CAGR of 21.0% from

deployment by way of credit facilities to



from KD9.9bn in 2003 to KD15.3bn in 2006, registering CAGR

of 15.5% for the period 2006-2011.

The share of private sector deposits to total deposits declined from 94.0%

to 91.4% in 2011. On the other hand, Government deposits

registered a CAGR of 31.3% from KD634mn in 2006 to KD1,434mn in

. Contribution of Government deposits to total deposits

.0% in 2006 to 8.6% in 2011.

Asset Composition

Credit facilities to residents during the period under review grew at a

CAGR of 21.0% from KD8.4bn in 2003 to reach KD14.9bn in

deployment by way of credit facilities to residents increased during


Page 6

6 from KD9.9bn in 2003 to KD15.3bn in 2006, registering CAGR

al deposits declined from 94.0%

other hand, Government deposits

to KD1,434mn in

. Contribution of Government deposits to total deposits increased from

e period under review grew at a

to reach KD14.9bn in 2011. The

residents increased during this



Analysis Report

period resulting in its contribution to consolidated assets of

increase from 44.8% in 2003 to 55.3% in

4- Study Methodology

Financial performance is the dependent variable, and mea

assets (ROA) and the

this study are the following:

• The Bank Size measured by the total assets of the bank.

• Asset Management measur

income divided by total

• Operational Efficienc

(total operating expenses

In order to classify the

banking activities and is



period resulting in its contribution to consolidated assets of

increase from 44.8% in 2003 to 55.3% in 2011.

Study Methodology

Financial performance is the dependent variable, and measured by return on

) and the interest income size. The independent variables of

this study are the following:

The Bank Size measured by the total assets of the bank.

Asset Management measured by asset utilization ratio (

income divided by total assets)

Operational Efficiency measured by the operating efficiency ratio

total operating expenses divided by net interest income

In order to classify the Kuwaiti commercial banks, this study uses the major

banking activities and is comprised of:


Page 7

7 period resulting in its contribution to consolidated assets of local banks

sured by return on

interest income size. The independent variables of

The Bank Size measured by the total assets of the bank.

ed by asset utilization ratio (operational

he operating efficiency ratio

divided by net interest income

anks, this study uses the major




8 • total deposits,

• total credits,

• total assets,

• total shareholder equity,

• return on equity, and

• return on deposits.

Also, this study tries to explore any kind of variance according to its

different variables. Therefore, some calculations were applied to examine

and compare the impact of independent variables on the dependent variable

as:

• correlations,

• ratio analysis,

• and simple regression

Taking into consideration that:

• analysis of variance (ANOVA) will be used in testing the hypotheses

and to measure the differences and similarities between the sample

banks according to their different characteristics.

• Pearson correlation coefficient also used to investigate the correlation

between the variables at 5% level of confidence according to the

SPSS software package.




9 5- Results and Analysis

a) Total Deposits of The Kuwaiti Commercial Banks

Table (1). Total deposits of the Kuwaiti Commercial Banks

2006 2007 2008 2009 2010 2011

Growth

Rate

Average

ABK

1,616,103

2,230,434

1,991,676

1,837,673

2,022,052

2,102,433

30%

1,966,729

BB

1,300,936

1,648,538

2,416,101

2,424,981

2,564,826

2,795,779

115%

2,191,860

CBK

1,750,121

2,635,850

2,644,840

2,041,909

2,272,578

2,253,965

29%

2,266,544

GB

3,211,296

4,065,794

4,484,229

4,068,402

3,957,443

4,107,263

28%

3,982,405

NBK

4,378,486

5,716,101

5,545,249

6,600,243

6,385,238

6,799,192

55%

5,904,085

Total

12,256,942

16,296,717

17,082,095

16,973,208

17,202,137

18,058,632

47%

16,311,622

The above Table (1) indicates that growth rates of Al Ahli Bank of

Kuwait (ABK), Burgan Bank (BB), Central Bank of Kuwait (CBK),

Gulf Bank, and National Bank of Kuwait are 30%, 115%, 29%, 28%,

and 55% respectively. To rank the banks based on their average total




10 deposits, BB bank is considered to be number one, NBK bank is number

two, and ABK, CBK, and GB are three, four, and five respectively

b) Total Credits Of The Kuwaiti Commercial Banks

Table (2). Total Credits of the Kuwaiti Commercial Banks

As concluded from the above Table (2), BB bank is the highest average

of total credits, and NBK bank is the lowest one. However, the bank

with highest growth rate of total credits during the period does not

always mean having high average of total credits. Based on the average

total credits of the listed banks in Table (2), rank of the banks will be as:

BB is the first, NBK is the second, and ABK, CBK, and GB get

positions of the third, the fourth, and the fifth respectively.

TC 2006 2007 2008 2009 2010 2011 Grow

Rate

Average

ABK 1,433,932 1,870,012 2,129,103 2,023,694 2,005,785 2,066,379 44% 1,921,484

BB 946,317 1,421,104 2132,990 ,246,949 2,135,789 2,252,348 138% 1,855,916

CBK 1,509,159 2,214,221 2,430,381 2,406,910 2,348,354 2,161,007 43% 2,178,339

GB 2,586,374 3,306,789 3,480,295 3,275,011 3,203,157 3,368,227 30% 3,203,309

NBK 4,309,836 5,920,308 6,955,405 7,817,110 7,853,325 8,182,226 90% 6,839,702

Total 10,785,618 14,732,434 7,128,174 7,769,674 17,546,410 18,030,187 67% 15,998,750




11 c) Total Assets Of The Kuwaiti Commercial Banks

Table (3). Total Assets of the Kuwaiti Commercial Ban

Ranking of the banks based on their average total assets is showed that

BB bank to be number one, and NBK bank is the last one in the total

assets ranking. It is clear also from Table (3) that both banks of ABK

and CBK are ranked in the third position.

TA 2006 2007 2008 2009 2010 2011 Grow

Rate

Average

ABK 2,424,526 2,961,157 3,036,959 2,965,988 2,949,098 3,079,801 27% 2,902,922

BB 2,210,215 2,847,547 3,942,999 4,093,984 4,147,461 4,551,772 106% 3,632,330

CBK 2,917,233 4,289,293 4,306,651 3,595,297 3,622,603 3,714,292 27% 3,740,895

GB 4,059,951 5,082,909 4,947,447 4,743,911 4,599,777 4,785,895 18% 4,703,315

NBK 7,898,254 11,539,421 11,973,322 12,907,256 12,898,944 13,626,848 73% 11,807,341

Total 19,510,179 26,720,327 28,207,378 28,306,436 28,217,883 29,758,608 53% 26,786,802




12 d) Total Shareholders’ Equity Of The Kuwaiti Commercial Banks

Table (4). Total Shareholders’ Equity of the Kuwaiti Commercial Banks

From the above Table (4), NBK bank shows the highest growth rate in

its total shareholders’ equity 119% in year 2011 comparing with its

owners equity in year 2006. Further, GG bank is ranked in the second

rank as Table (4) indicates its shareholders equity of average 87%. The

third, fourth , and fifth ranks went to BB, CBK, and GB respectively,

where the smallest growth rate in total shareholders’ equity was

recorded of GB as indicated in Table (4) with 8%.

SH 2006 2007 2008 2009 2010 2011 Grow

Rate

Average

ABK 263,183 319,094 312,412 330,486 468,636 490,943 87% 364,126

BB 260,154 351,140 310,286 325,475 420,427 447,288 72% 352,462

CBK 484,591 527,016 496,702 439,939 485,018 530,476 9% 493,957

GB 398,851 490,624 37,988 407,853 410,715 430,259 8% 362,715

NBK 1,059,737 1,685,865 1,557,541 1,825,282 2,217,635 2,324,608 119% 1,778,445

Total 2,466,516 3,373,739 2,714,929 3,329,035 4,002,431 4,223,574 71% 3,351,704




13 e) Return On Equity Ratio At The Kuwaiti Commercial Banks

The return on equity (ROE) is considered to be one of the profitability

performance ratios. It shows a higher value for NBK bank when

compared with other listed banks in Table (5).

Table (5). Return On Equity Ratio At The Kuwaiti Commercial Banks

From the above Table (5), it can be concluded that, the average ROE

ratio is 16% for NBK bank while GB bank got negative average ROE

(148-%) during the period (2006-201). The ROE is net profit after taxes

divided by total owners equity. It reflects the bank management's ability

ROE=net

profit/equity

2006 2007 2008 2009 2010 2011 Average

ABK 22.80% 23.83% 14.74% 11.85% 11.35% 10.25% 15.80%

BB 21.42% 21.31% 11.52% 6.33% 3.69% 12.87% 12.86%

CBK 20.64% 22.84% 20.28% 0.03% 8.36% 0.16% 12.05%

GB 26.55% 26.59% -

946.39%

-6.88% 4.64% 7.12% -148.06%

NBK 23.95% 16.32% 16.54% 14.61% 13.66% 13.06% 16.36%




14 to generate net profits from using the owners equity as one of the

financial sources.

f) Return On Deposits Ratio At The Kuwaiti Commercial Banks

The ROA reflects the bank management ability to generate profits by

using the available financial and real assets.

Table (6). Return On Deposits Ratio At The Omani Commercial Banks

T

h

e

a

b

o

ve Table (6) shows that the majority if return on deposits (ROD) ratios

of the listed banks are positive and strong too. This ratio reflects the

bank management ability to utilize the customers’ deposits in order to

generate profits. The average of ROD for commercial banks in Kuwait

during the period 2006-20011 as shown in Table (6). Comparing it with

ROD=net

profit/total

deposits 2006 2007 2008 2009 2010 2011 Average

ABK 3.71% 3.41% 2.31% 2.13% 2.63% 2.39% 2.77%

BB 4.28% 4.54% 1.48% 0.85% 0.61% 2.06% 2.30%

CBK 5.71% 4.57% 3.81% 0.01% 1.78% 0.04% 2.65%

GB 3.30% 3.21% -8.02% -0.69% 0.48% 0.75% -0.16%

NBK 5.80% 4.81% 4.65% 4.04% 4.74% 4.47% 4.75%




15 other banks, ABK bank will be the first with average of (2.77%), and

GB bank is the last one with average of (- 0.16% ).

g) Return On Assets Ratio At The Kuwaiti Commercial Banks

As shown in the following Table (7), the summary of (ROA) ratios

during the period of 2006-2011 for the commercial banks in Kuwait is

presented.

Table (6). Return On Deposits Ratio At The Omani Commercial Banks

According to rank the banks based on this ratio, NBK bank is the first

one, it has an average of ROA 2.40%. The second position is for ABK

bank with ROA equals to 1.89%, and the last position is belonged to GB

bank with ROA equals to -0.27%.

ROA=net

profit/total

assets 2006 2007 2008 2009 2010 2011 Average

ABK 2.48% 2.57% 1.52% 1.32% 1.80% 1.63% 1.89%

BB 2.52% 2.63% 0.91% 0.50% 0.37% 1.26% 1.37%

CBK 3.43% 2.81% 2.34% 0.00% 1.12% 0.02% 1.62%

GB 2.61% 2.57% -7.27% -0.59% 0.41% 0.64% -0.27%

NBK 3.21% 2.38% 2.15% 2.07% 2.35% 2.23% 2.40%




16 h) Ranks of the Kuwaiti Commercial Banks

In order to summarize the classification of the banks based on rank of

their activities and profitability ratios, Table (8) contains ranks of the

positions for these banks.

Table (8). Ranks Of Commercial Banks in Kuwait based on financial indicators

Rank ABK BB CBK GB NBK

Deposits 5 4 3 2 1

Credits 4 5 3 2 1

Assets 5 4 3 2 1

Shareholdes’

Equity 3 5 2 4 1

ROE 2 4 3 5 1

ROD 1 2 3 4 5

ROA 2 4 3 5 1

Figure (1). Ranks Of Commercial Banks in Kuwait.

0

1

2

3

4

5

6

Ra

nk

ABK

BB

CBK

GB

NBK




17 As shown from the above Table (8) and Figure (1), it is concluded that

the bank of NBK achieved the first rank according to multiple factors,

which are total deposits, total credits, total assets, total shareholders’

equity, ROE, and ROA, and it achieved the fifth rank according to ROD

factor.

On the contrary, the bank of BB got the fifth rank in its financial

performance in factors of in total credits, shareholders’ equity, and total

shareholders’ equity, while its got the fourth rank in total deposits, total

assets, ROE, and ROA. The matter which approve the last rank

achieved among the other competing commercial banks.

i) Hypotheses Testing

The hypotheses adopted in this study can be given as :

• there is positive correlation relationships among the financial

performance measured by ROA, and interest income size, and the

independent variables (operational efficiency, asset management,

bank size).

• there exist an impact of operational efficiency, asset

management, and bank size on financial performance of the

Kuwaiti commercial banks.

i-1) Correlation Coefficient

Correlations and variance analysis were calculated to examine the

impact of independents variables on the dependent variable, based on

analyzing the average data for all variables of the study during the

period 2006-2011 as shown in the following Table (9).




18 Table (9): Key Average Data of CBs in Kuwait (2006-2011)

ABK BB CBK GB NBK

variable 1 (ROA)* 1.89% 1.37% 1.62% -0.27% 2.40%

variable 2 (interest income)*

147,140

174,765

182,214

240,996

548,299

variable 3 (operational

efficiency)** 40.21% 51.81% 30.69% 40.67% 42.63%

variable 4 (assets

utilization)** 3.84% 3.68% 4.10% 2.97% 4.13%

variable 5 (assets size)**

2,902,922

3,632,330

3,740,895

4,703,315

11,807,341

* dependent v

** independent v

Figure (2). Key Average Data of CBs in Kuwait.

variable 5 (assets size)**

ABK

BB

CBK

GB

variable 1 (ROA)*

ABK

BB

CBK

GB

variable 4 (assets

utilization)**

ABK

BB

CBK


efficiency)**

ABK

BB

CBK

variable 2 (interest income)*

ABK

BB

CBK

GB




19 The result of correlations analysis between independent variables and

dependent variable as given in the Table (9), and Figure (2), it can be

concluded the following tables of correlation calculations:

• Interest Income vs. Operational Efficiency

Correlation ABK BB CBK GB NBK

variable 2 (interest income)* 147,140 174,765 182,214 240,996 548,299


efficiency)** 40.21% 51.81% 30.69% 40.67% 42.63%

0.089834327 9%

• Interest Income vs. Asset Utilization

• Interest Income vs. Assets Size

• ROA vs. Operational Efficiency


variable 1 (ROA)* 1.89% 1.37% 1.62% -0.27% 2.40%


efficiency)** 40.21% 51.81% 30.69% 40.67% 42.63%

-0.026348437 -2.63%



variable 4 (assets

utilization)** 3.84% 3.68% 4.10% 2.97% 4.13%

0.297939787 29.79%


variable 2 (interest

income)* 147,140 174,765 182,214 240,996 548,299

variable 5 (assets size)** 2,902,922 3,632,330 3,740,895 4,703,315 11,807,341

0.999123573 99.9%




20 • ROA vs. Assets Utilization


variable 1 (ROA)* 1.89% 1.37% 1.62% -0.27% 2.40%

variable 4 (assets utilization)** 3.84% 3.68% 4.10% 2.97% 4.13%

0.948876593 94.8%

• ROA vs. Assets Size


variable 1 (ROA)* 1.89% 1.37% 1.62% -0.27% 2.40%


0.40806745 40.8%

From the previous mentioned tables of correlations it can be concluded

that there is an existence of strong positive correlation between interest

income vs. assets size equals to 99.9% , and on the other hand there is an

existence of negative correlation between ROA and operational efficiency which

equals to -2.63%

Moreover, there is significant positive correlations between financial

performance ( interest income size) and the independent variables with

correlation coefficients of +9 %, and + 29.79% respectively. Based on

these correlations, then the first hypothesis was accepted. Thus, there is

a positive relationships among return on assets, interest income, asset

management, operational efficiency, and the bank's size.




21 i-2) Analysis of Variance

The summery results of the analysis of variance (ANOVA) is shown in

Table (10) for testing the second hypothesis.

Table (10): Analysis of Variance (ANOVA)

ANOVA

Score

Sum of Squares df Mean Square F Sig.

Between Groups 246372.239 4 61593.060 11.213 .000

Within Groups 109859.732 20 5492.987

Total 356231.971 24

Predictors ( V3, V4, V5 )

Dependent V2 :interest income size

* Indicate significance at or below = 0.05 level

From the above Table (10), it is can be concluded that :

• The testing rule is to accept alternate hypothesis (H1) if the

calculated Sig less than 0.05. therefore, there is a positive impact

of independent variables of financial performance measured by

ROA and interest income size.

• It is clear from table (10) that values of Sig 0.0 is less 0.05 level.

Therefore, the second hypothesis was accepted which means that

there is an impact of operational efficiency, asset management,

and bank size on the financial performance of the commercial

banks in Kuwait.




22 6- Conclusion

The importance of this study may be viewed from its contribution to add

literature of the performance of commercial bank in Kuwait. That is,

findings of this study can serve as a starting point for more complicated

research, meanwhile as practical, this study make give decision makers in

the banking sectors of Kuwait more evidences of their bank ranking and

financial performance positions in comparison with other banks, in order to

create an appropriate financial strategies for attaining the required planned

financial performance.

Data analysis of this study revealed that the ranking of commercial banks

in Kuwait based on their total deposits, total credits, total assets, and total

shareholders’ equity is ranked as: National Bank of Kuwait (NBK) is

considered to be the first one, Burgan Bank (BB) is in the second rank,

Central Bank of Kuwait (CBK) is the third, Al Ahli Bank of Kuwait (ABK)

is the fourth, and the last rank is for Gulf Bank (GB).

Based on the bank return on assets, the higher rank is Burgan Bank (BB),

National Bank in Kuwait (NBK) is the second, Both banks of Al Ahli Bank

of Kuwait (ABK) and Central Bank of Kuwait (CBK) are the third, Gulf

Bank is the fourth and lowest ranked.




23 Findings also indicate that the ranking of the banks based on their return on

equity is classified National Bank of Kuwait (NBK) to be the first, Al Ahli

Bank of Kuwait is the second, Burgan Bank is the third, Central Bank of

Kuwait if the fourth, and the lowest rank is the Gulf Bank (GB). Based on

the reported ranking, it is concluded that the bank with higher predictors of

total assets, credits, deposits, or shareholder equity does not always mean

that it has better profitability performance.

This study examined these predictors impact on the financial performance

of commercial banks in Kuwait. The regression analysis results showed that

financial performance of the banks was strongly and positively influenced

by the operational efficiency, and asset management, in addition to the

bank size. This was agreed with the correlation analysis among the

variables of the study which indicated the existence of positive

relationships.

Finally, the study provides bank managers with understanding of activities

that would enhance their banks financial performances. The results of this

study imply that it might be necessary for a bank management to take all

the required decisions to enhance the financial positions of the bank.




24 References

El – Markazi Jornal, Mazhar M. Islan, (2003), “ Development and performance of

domestic and foreign banks in GCC countries” Managerial Finance, Vol.29, No. 2,

pp 42-71.

Elizabeth D., Greg Elliot (2004),” Efficiency, customer service and financial

performance among Australian financial institutions”, International Journal of

Bank marketing, Vol.22, No. 5, pp. 319-342.

Rangan, N., and Grabowski, R.( 1988), “ The technical efficiency of US banks”

Economic Letters, 28, pp. 169-175.

Richard B., and James M. ( 2003), “ Asset and liability management: What does

the future have in store?” Journal of Intellectual Capital, Vol. 6, No. 2, pp. 135-

149.

Ruth F., (2001), “Asset and liability management for banks: A lawyers

perspective” Balance Sheet, Vol. 9, No. 3, pp. 20-23.

Share holders Guide, Muscat Securities Market Book, No. 16, 2004, p. 12.

Spathis, K., and Doumpos M., (2002), “ assessing profitability factors in the Greek

banking system: A multi criteria methodology” International transaction in

Operational Research , Vol. 9, Sept. issue, p. 517.




25 Appendix




efficiency)** 40.21% 51.81% 30.69% 40.67% 42.63%

0.089834327



variable 4 (assets

utilization)** 3.84% 3.68% 4.10% 2.97% 4.13%

0.297939787


variable 2 (interest

income)* 147,140 174,765 182,214 240,996 548,299


0.999123573


variable 1 (ROA)* 1.89% 1.37% 1.62% -0.27% 2.40%


efficiency)** 40.21% 51.81% 30.69% 40.67% 42.63%

-0.026348437


variable 1 (ROA)* 1.89% 1.37% 1.62% -0.27% 2.40%


0.40806745




26 Correlation ABK BB CBK GB NBK

variable 1 (ROA)* 1.89% 1.37% 1.62% -0.27% 2.40%

variable 4 (assets

utilization)** 3.84% 3.68% 4.10% 2.97% 4.13%

0.948876593

Economy & Finance

Case study-Kuwaiti banks performance