Everything about
Real estate market in Saudi Arabia

GCC banking sector sees a good year after profits surge 40% to hit $35bn


RIYADH: The Gulf Cooperation Council’s banking sector profits recorded a 40 percent surge to hit $35 billion in 2021, according to a report by investment company Kamco.

Nevertheless, profits remain below pre-pandemic levels of $37 billion in 2019.

The surge in profits is mainly attributed to an increase in total bank revenue alongside a decline in loan loss provisions.

This comes as total bank revenues increase by 6.9 percent to reach a record $90 billion during the period. 

This is mainly due to a growth of 17.6 percent in non-interest income as well as a minor additional growth of 2.3 percent in net interest income.

As for loan loss provisions, they have plunged by over 25 percent to reach $14.9 billion in 2021, down from $20.4 billion in 2020. 

Yet, loan loss provision levels remain higher when compared to the average of $9.1 billion in the ten years prior to the outbreak of the pandemic.

In the final quarter of 2021 alone growth in lending slowed to a three-quarter low of 1.2 percent growth to reach $1.7 trillion. 

Customer deposits too decelerated with a growth of 1.2 percent to reach $2 trillion. Accordingly, the aggregate GCC banking sector’s loan to deposit ratio slipped 10 basis points to reach a level of 79.9 percent, reflecting a five-quarter low.

Other Posts

Follow us

You may also like

Your privacy is our priority.

Land Sterling | KSA uses cookies and similar technology to understand how you use our website and to enable us to continuously improve your experience. To learn more about our use of cookies and approach to data privacy, click here.
By continuing to use our website, you accept our use of cookies.