- UAE-listed banks led the GCC with a 5.6% Q-o-Q growth and the highest RoE at 16.9% in Q1-2024.
- The GCC banking sector saw an overall Q-o-Q growth of 11.8% and Y-o-Y growth of 10.5%, reaching $14.4 billion in Q1-2024.
- UAE banks led the GCC in Net Interest Margins at 3.49%, followed by Saudi Arabian banks at 3.18%.
- The UAE achieved the highest RoE in the GCC, increasing by 280 basis points Y-o-Y.
- Kamco Invest’s report underscores the UAE’s strong growth metrics, robust returns, and a favourable financial environment.
UAE-listed banks demonstrated exceptional performance in the first quarter of 2024, leading the GCC with a quarter-on-quarter (Q-o-Q) growth of 5.6%.
According to the GCC Banking Sector Report for Q1-2024, released by Kamco Invest, these banks also achieved the highest return on equity (RoE) in the region, reaching 16.9% by the end of Q1-2024.
The report analyzed the financial results of 57 listed banks across the GCC. It highlighted that the overall bottom-line performance of the GCC banking sector remained robust, with a healthy Q-o-Q growth of 11.8% and a year-on-year (Y-o-Y) growth of 10.5%, culminating in a total of $14.4 billion for Q1-2024.
UAE-listed banks recorded the most significant Q-o-Q growth at 5.6%, with total customer deposits hitting $803.2 billion, the highest in the GCC. This impressive performance underscores the strength and stability of the UAE banking sector.
In terms of Net Interest Margins (NIMs), UAE banks once again led the GCC, achieving a NIM of 3.49% in Q1-2024, slightly down from 3.52% in Q4-2023.
The report attributed these higher margins to ample liquidity, which allows UAE banks to benefit from the tightening interest rate cycle while maintaining modest asset growth.
Saudi Arabian banks followed with a NIM of 3.18%, while Qatari and Kuwaiti banks recorded NIMs of 3.06% and 2.87%, respectively.
At the country level, the UAE continued to top the region with the highest RoE at 16.9%, closely followed by Saudi Arabian and Qatari banks, which posted RoEs of 12.8% and 12.7%, respectively.
Notably, UAE-listed banks also exhibited the most significant Y-o-Y growth in RoE, increasing by 280 basis points. This surge was primarily driven by elevated profits and relatively smaller growth in total shareholders’ equity.
Overall, the report by Kamco Invest highlights the UAE’s dominant position in the GCC banking sector, marked by strong growth metrics, robust returns, and a favourable financial environment that supports sustained profitability and expansion.
Follow us on Instagram, LinkedIn, and Twitter for startup & business news and inspiring stories of MENA businesses, entrepreneurs, startups, innovators, investors, and change-makers.
To report any issue or error in the story, please email us editor [at] rasmal [dot] com.
Last Updated on May 22, 2024 by Safiya K
