Profits of GCC banks hit record high in Q1

Profits of GCC banks hit record high in Q1

Muscat – Total net profits for listed banks in the GCC countries reached a new record high during Q1 2023, mainly led by a steep quarterly increase in non-interest income that more than offset a decline in interest income in Qatar and Kuwait.

In addition, lower provisions booked by banks in the region also supported banks’ bottom-line performance during the first quarter, according to a new report released by Kuwait-based Kamco Investment.

‘Aggregate net profits of the listed GCC banks saw the biggest quarter-on-quarter growth since the pandemic at 17% to reach $13.4bn during Q1 2023 from $11.5bn recorded in Q4 2022. The sequential increase in net profit was broad-based and was seen across the GCC,’ Kamco Investment said.

However, total quarterly net interest income of GCC banks declined for the first time in five quarters during Q1 2023, mainly led by a decline reported by banks in Qatar and Kuwait.

Non-interest income, meanwhile, increased by a strong 17.2% during the first quarter with growth seen across the GCC, barring in Bahrain. Kuwait, Saudi and Qatari banks reported strong double-digit growth in non-interest income during the quarter.

The trend in provisions was mixed during the first quarter of this year, although aggregate provisions declined by