GCC’s Banks Gross Loans Reach $1.93 Trillion

GCC’s Banks Gross Loans Reach $1.93 Trillion

The aggregate gross loans in the Gulf region reached a new record of $1.93 trillion, and the banking sector in the Gulf countries is witnessing the initial interest rate hike applied by the central banks in the Gulf Cooperation Council (GCC) countries consistent with the US Federal Reserve interest rate hike.

Kuwait-based KAMCO Investment Company said the net interest income for listed banks in the GCC reached a record quarterly level at $18.6 billion during the third quarter (Q3) of 2022 compared to $17.2 billion during Q2.

According to the report, non-interest income dropped to a four-quarter low of $7.4 billion during Q3-2022 compared to $7.8 billion during Q2-2022, reflecting a slide in global and regional financial markets during the quarter.

Aggregate lending in the GCC remained strong during the quarter. Central bank data showed Kuwaiti banks seeing double-digit growth in outstanding credit facilities during the quarter.

The report shows that Saudi Arabia, Bahrain, and Omani banks registered low single-digit growths.

The Credit survey from UAE central banks also showed strong lending during the quarter. On the other hand, the Qatari banking sector was an exception showing a marginal decline in lending during the quarter.

Data on listed banks also showed growth, with aggregate GCC gross