GCC: Banks’ Net Profit Plummets to $25.4 Billion In 2020
- Date: 23-Jun-2021
- Source: Al Bawaba
- Sector:Financial Services
- Country:user-top-picks
GCC: Banks’ Net Profit Plummets to $25.4 Billion In 2020
While the capital adequacy ratio increased from 18.4% in 2019 to 18.7%, total assets and cost-to-income ratio rose from $2.3 trillion to $2.5 trillion and from 40.4% to 41.4%, respectively, according to the report titled "Banks redefined“.
Citing some of the key trends associated with the Kuwait banking sector, Bhavesh Gandhi, Partner and Head of Financial Services at KPMG in Kuwait stated: "The Kuwait banking sector has reported a growth of 5.3% in total assets, however, net profit has declined by 52.8% due to historic low interest rates in 2020 and higher charge for provision for credit losses, on account of the Covid-19 pandemic. The Kuwait banking sector is well capitalized with the average capital adequacy ratio of 17.9%, which is comfortably higher than the CBK's mandated minimum of 13.0%.“
The overall non-performing loans (NPL) ratio for the GCC banking sector has increased by 0.4% and now stands at 3.4%.
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