GCC-listed banks' profits hit new record high of $16.2bn in Q2
MANAMA, 5 days ago
The net profits of GCC-listed banks soared to a new record high of $16.2 billion in Q2, an increase for the second consecutive quarter with a growth of 3.7% while y-o-y growth stood at a strong 9.2%, according to Kamco Invest, a regional non-banking financial powerhouse headquartered in Kuwait.
The sequential increase was once again mainly led by a broad-based increase in revenues for the sector and lower cost-to-income ratio that more than offset an increase in impairments during the quarter, it stated.
The topline growth for the sector reflected continued lending growth as economic fundamental remain strong in the region backed by a healthy pipeline of projects.
At the country level, the q-o-q growth remained largely positive with five out of six country aggregates showing a sequential growth in net income while the aggregate for the Bahraini banking sector showed a decline, it stated.
The growth was spearheaded by Kuwaiti-listed banks which showed the biggest absolute growth in net profits with an increase of $204.6 million or 15.6% mainly led by reversal of provisions reported by three out of nine listed banks on the exchange.
UAE and Saudi banks were next with net profit growth of $191.8 million (+3.2%) and $152.3 million (+2.6%), respectively, said Kamco Invest in a statement.
The y-o-y growth in net income was also positive across the board with double-digit growth in profits for Saudi and Bahraini banks further supported by healthy growth in profits for banks in Oman and Kuwait, it stated.
In terms of topline performance, aggregate banking sector revenues reached a new record high during the quarter at $35.6 billion, after registering a healthy q-o-q growth of 3.6%.
The growth was led by a broad-based increase in revenues reported by banks across country aggregates that more than offset an 8.2% decline reported by Bahraini banks.
UAE-listed banks led the way during the quarter with a revenue growth of 5.3% or $674 million during Q2 as compared to Q1. Lending growth remained resilient during the quarter, registering an increase of 3.4%, the second-biggest q-o-q growth in 16 quarters, reaching $2.23 trillion at the end of Q2.
Kamco Invest said this reflected the resilient non-oil sector growth in the region with non-oil manufacturing consistently well above the growth mark for key economies in the region.-TradeArabia News Service
