The performance of Gulf banks in the first quarter of 2024 shows resilience and strength in the face of economic challenges, with expectations of continued growth in the future.
The results of the first quarter of 2024 showed a remarkable growth in the net profits of Gulf banks, as they rose by 11.8% on a quarterly basis and by 10.5% on an annual basis, to reach $14.4 billion.
UAE banks topped the scene with profits amounting to $5.6 billion, followed by Saudi Arabia ($4.9 billion), Qatari ($1.9 billion), and Kuwaiti ($1.3 billion), according to an economic report issued by “Kamco Invest,” which monitors the performance of 57 banks listed in Gulf stock exchanges.
This growth in profits was partly due to lower operating expenses and lower impairment charges, even though total bank revenues reached $31.4 billion in the first quarter.
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According to the report, the UAE maintained its lead in net interest margin at 3.49%, which reflects the abundance of liquidity enjoyed by UAE banks and their ability to benefit from the current interest rate cycle. Saudi Arabia came in second place with an interest margin of 2.18%, followed by Qatar (2.06%) and Kuwait (2.87%).
UAE banks also topped the list of return on shareholders’ equity with a rate of 16.9%, followed by Saudi Arabia (12.8%) and Qatar (12.7%).
UAE banks witnessed the largest growth in this index by 280 basis points, driven by higher profits and growth in total shareholders’ equity.
