Fitch: Sound assets for Kuwait banks

Fitch Ratings said that Kuwaiti banks will see slower asset and profitability growth in 2008, due to regulatory and competitive pressures. Nevertheless, the banks remain sound in their fundamentals.

Measures by the Central Bank of Kuwait in the first half of 2008 to curb rapid growth in consumer lending may lead to margin compression, put pressure on profitability and inhibit growth, Fitch said, while constraining regulatory capital ratios.

Still, Kuwaiti banks' asset quality remains sound. Liquidity is satisfactory and capitalization is adequate, Fitch said.

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