Gulf banking sector witnesses robust surge in first quarter of 2024
Date
5/23/2024 5:11:05 AM
(MENAFN) In the first quarter of this year, the Gulf banking sector witnessed notable growth, with net profits increasing by 11.8 percent on a quarterly basis and 10.5 percent annually, totaling USD14.4 billion. This data, as outlined in an economic report by Kamco Invest, which analyzes the performance of 57 banks listed on Gulf stock exchanges, highlights the resilience and profitability of the region's banking industry.
Among the Gulf nations, UAE banks emerged as leaders in terms of net profits, totaling USD5.6 billion, followed by Saudi banks with USD4.9 billion, Qatari banks with USD1.9 billion, and Kuwaiti banks with USD1.3 billion. The report attributes this growth in net profits to a decrease in total operating expenses and a decline in impairment provisions. Notably, bank revenues reached approximately USD31.4 billion in the first quarter of 2024.
The UAE maintained its position at the forefront of the Gulf banking sector, boasting the highest net interest margin at 3.49 percent. This margin reflects abundant liquidity in Emirati banks, allowing them to capitalize on the tightening interest rate cycle as their assets expand. Saudi banks followed with a net interest margin of 2.18 percent, while Qatari and Kuwaiti banks recorded margins of 2.06 percent and 2.87 percent, respectively.
Moreover, banks listed in the UAE markets demonstrated the highest return on shareholders’ equity at the end of the first quarter, standing at 16.9 percent. Saudi and Qatari banks followed closely with returns of 12.8 percent and 12.7 percent, respectively. This performance underscores the attractiveness of the Gulf banking sector to investors and reflects positively on the region's economic stability and growth prospects.
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