Qatar Banks record highest average ROE in Q4 2021; Kamco Invest

Qatar Banks record highest average ROE in Q4 2021; Kamco Invest

According to the GCC banking sector report of Kuwait Financial Powerhouse, Kamco Invest, Qatar banks achieved the highest average return on equity (ROE) among lenders in GCC countries in the fourth quarter (Q4) of 2021.

Kamco Invest reported that, the banking sector in Doha had a 12 percent ROE at the end of Q4 2021, higher than the GCC average of 10 percent.

While Saudi Arabian lenders witnessed an ROE of 11.1 percent, the UAE lenders achieved a 10.3 percent ROE. The other ROE numbers in the region were, Bahrain at 8.4 percent, Kuwait at 8.2 percent and Oman at 6.9 percent.

The banking sector recorded high revenue growth across the GCC. Qatari banks topped the list with 9.9 percent growth, followed by the UAE with 9 percent and Kuwait with 7.1 percent.

Following an increase in total bank revenues and a decline in loan loss provisions (LLPs), net profit in the GCC banking sector grew by 40 percent year on year to $35 billion in 2021.

On a quarterly basis, LLP rose 17.6 percent quarter on quarter but fell 39.2 percent to $3.8 billion in 2021 fourth quarter. While Saudi and Bahraini banks achieved nominal growth, a major chunk of the quarterly growth was