UAE-listed banks lead GCC in Q-o-Q growth in 2024 at 5.6 per cent
May 21, 2024
Dubai [UAE], May 21 (ANI/WAM): Bottomline performance for the GCC banking sector remained steady with a healthy q-o-q growth of 11.8 per cent and a Y-o-Y growth of 10.5 per cent to reach USD 14.4 billion during Q1-2024, according to GCC Banking Sector Report - Q1-2024, released today by kamco Invest.
The report, which analyses the financials reported by 57 listed banks in the GCC for the quarter ended Q1-2024, revealed that UAE-listed banks recorded the biggest Q-o-Q growth during Q1-2024 at 5.6 per cent with total customer deposits reaching USD 803.2 Bn, the biggest in the GCC.
"UAE once again ranked first in the GCC in terms of Net Interest Margin (NIMs) that reached 3.49% in Q1-2024 as compared to 3.52% during Q4-2023. The higher margins as compared to Gulf peers reflect ample liquidity that allows UAE banks to capitalise on the tightening interest rate cycle with more modest asset growth. Saudi Arabian banks were next with a NIM of 3.18% followed by Qatari and Kuwait banks at 3.06 per cent and 2.87 per cent, respectively,'' the report noted.
At the country level, the report said, UAE-listed banks once again topped in the region with the highest return on equity (RoE) at the end of Q1-2024 at 16.9 per cent closely followed by Saudi Arabian and Qatari banks with RoEs of 12.8 per cent and 12.7 per cent, respectively. The biggest Y-o-Y growth in RoE was also seen for UAE-listed banks at 280 bps which was mainly led by elevated profits as well as a relatively smaller growth in total shareholders' equity. (ANI/WAM)
