KPMG publishes GCC listed banks’ results

KPMG publishes GCC listed banks’ results

Speaking on the overall trends in the GCC banking sector, Bhavesh Gandhi, Head of Financial Services, KPMG in Kuwait stated, “In the last two years, the banking sector has witnessed cautious growth as banks focused on embracing technology and reducing costs. This strategy turned out to be the correct one, as the sector has gone through unprecedented growth and profits exceeded expectations this year. The banks within the GCC continue to accelerate digital investments, providing a digital-first approach to the customers and partnering with various fintech firms to make banking more accessible to all.”

The GCC listed banks’ results called attention to the 35.8% increase in profitability, which was led by the growth surge in loan book, reduction in the costs of funds and a laser-focused approach toward cost efficiencies. Moreover, listed bank share prices also witnessed a 36.6% rise, while the total assets, return on equity (RoE) and return on assets (RoA) grew by 6.4%, 2.8% and 0.3%, respectively. The banking sector in the region also saw an increase in the capital adequacy ratio (CAR) to a sector average of 19% and a reduction in the cost-to-income ratio by 0.3%.

Kuwait remained on top in terms of net profit by average