Qatar’s banking sector continued to record improvements in the first quarter of this year, supported by a strong economic recovery and post-pandemic demand. According to a report by Kamco Invest, Qatar’s banks grew 52% in the quarter (qoq) and achieved a profit of 1.8 billion during the quarter.

GCC banking sector net income showed one of the strongest qoq growth in the first quarter of 2022, the highest quarter of $ 10.9 billion with 25.1% growth compared to $ 8.7 billion in the fourth quarter of 2021. You have reached one of the levels. yoy) The growth rate is also strong at 30.7%.

“Banks in Qatar showed the strongest qoq percent growth of 52% or $ 600 million during the quarter, reaching a profit of 1.8 billion. Next, UAE and Oman banks grew 27.1% and 25.5%, respectively. Profit reported by banks in Saudi Arabia reached $ 3.9 billion, the highest quarterly level, compared to $ 3.3 billion in the fourth quarter of 2021 and $ 3.2 billion in the first quarter of 2021. “I did,” the report said.

Return on equity (ROE) for the GCC banking sector continued to improve in the first quarter of 2022, reaching a high of 10.8% in the eighth quarter from 10.4% at the end of the fourth quarter of 2021. The average ROE at the end of the first quarter of 2022 was the highest at 12%, which is flat compared to the fourth quarter of 2021. Next, UAE Bank had a double-digit ROE of 11.5%, an improvement of 120bps compared to the previous quarter. Banks in Saudi Arabia also recorded a double-digit average ROE of 10.9%, down 20 bps from the 11.1% reported in the fourth quarter of 2021. The rest of the market reported single-digit ROE, with Kuwait Bank’s ROE at 8.9 percent, and Bahraini Bank and Omani Bank at 8.5 percent and 6.9 percent, respectively. “

Qatar’s banks had the highest GCC non-performing loan coverage of 98.5% in the third quarter, surpassing the 91.9% coverage of the fourth quarter of 2021. Bahrain’s banks are followed by 72.2%, followed by Oman and United Arab Emirates-listed banks at 63.5% and 63.2%, respectively.

According to recent economic data, Saudi Arabia’s GDP growth rate in the first quarter of 2022 was 9.9% year-on-year, the highest since 2011, and is expected to continue its activity until the end of the year.
Consensus estimates show that this year’s GCC’s real GDP growth rate is 6%, one of the highest growth rates in years.
Overall activity was also reflected in the PMI survey in the region. According to the data, Qatar, Saudi Arabia, United Arab Emirates and Dubai had PMI values ​​of over 50 in the first quarter of 2022, and manufacturing activity far exceeded the growth mark.

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