GCC-listed banks posted a record net profit of $16.2 billion in Q2, marking a second straight quarter of sequential gains and a 9.2% year-on-year increase, according to Kamco Invest.
The quarter’s gain was driven by increased revenue across the region and a lower cost-to-income ratio, which offset a rise in impairments. Lending continued to expand, supported by a sustained pipeline of projects and stable economic fundamentals.
By country, five of six markets delivered sequential profit growth; only Bahrain’s banking aggregate declined. Kuwait topped with the largest absolute gain, $204.6 million (15.6%), thanks primarily to reversals of provisions at three of nine listed banks. UAE and Saudi banks followed with increases of $191.8 million (3.2%) and $152.3 million (2.6%), respectively.
Year-on-year profit growth was positive across the board, with Saudi and Bahraini banks posting double-digit gains, alongside healthy increases in Oman and Kuwait.
Total banking sector revenues also reached a record high, $35.6 billion, with 3.6% quarter-on-quarter growth. Bahrain was the only country to show a decline in revenue.
At the national level, UAE-listed banks led revenue growth, adding $674 million (5.3%) over Q1. Lending in the region grew by 3.4%, the second-largest quarterly rise in 16 quarters, bringing outstanding loans to $2.23 trillion at quarter end. Non-oil manufacturing sectors broadly outperformed peers in key GCC economies.
