Gulf banks profits rise 62% in the first quarter of 2021


  The total assets of Gulf banks amounted to about 2.51 trillion dollars (AFP)</p><div><p>rose <a target="_blank" href="" rel="noopener">Bank profits</a> included <a target="_blank" href="" rel="noopener">in the financial markets</a> In the Gulf states during the first quarter of 2021, by 62 percent, supported by a decrease in allocations <a target="_blank" href="" rel="noopener">loan losses</a>.

According to a report by the Kuwaiti “Kamco Invest” company, which was based on data from 59 banks listed on the Gulf stock markets, the region’s banks recorded profits of $8.4 billion during the period, compared to $5.2 billion in the comparable period of 2020.

The profit improvement was mainly driven by a 41 percent decrease in loan loss provisions, or $2.5 billion, on a quarterly basis.

The region’s banks took a proactive stance during the past year, in recognizing non-performing loans, within the framework of some of the initiatives that were put forward, such as the Economic Support and Confrontation Program.

The report showed that total assets rose for the fourth consecutive quarter, reaching a new record high of 2.51 trillion dollars.

The report stated that shareholders of Gulf banks received cash dividends for last year’s profits of $6.6 billion, due to the facilities approved by the regulators.

The Gulf countries are trying to recover from the worst economic and financial crisis in their history as a result of the negative consequences of the outbreak of the Corona pandemic, and the decline in oil prices, the main source of income in the region, amid the decline in global demand.

The profits of the Gulf banks listed on the stock exchange recorded a decrease of 32.2 percent during 2020 to $ 25 billion, from $36.9 billion in the previous year.

In a previous report, Standard & Poor’s Global Ratings expected the Gulf banking sector’s profits to continue to decline during 2021, and the decline may continue in the following years, due to the pressure of low interest rates and a decline in a stable future outlook.

The number of Gulf banks operating in the Gulf states is about 168, serving about 58 million people.

The UAE has the largest number of banks with 48 banks, followed by Saudi Arabia and Bahrain with 31 banks each, then Kuwait 22, Qatar and Oman 18 banks each.



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