Listed banks in the GCC generated $18.6 billion in net interest income in the third quarter (Q3) of 2022, compared to $17.2 billion in Q2-2022, a report said.
The Kuwait-based Kamco Invest in its “GCC Banking Sector Report – Nov 2022” said that the sequential increase was broad-based and was seen across the GCC.
During Q3-2022, non-interest income declined to a four-quarter low of $7.4 billion as compared to $7.8 billion during Q2-2022, reflecting a slide in global and regional financial markets.
During the quarter, aggregate lending in the GCC remained strong. Kuwaiti banks experienced double-digit growth in outstanding credit facilities during the quarter, while Saudi Arabian, Bahraini, and Omani banks registered low single-digit growth.
The UAE central banks also showed strong lending during the quarter. The Qatari banking sector, on the other hand, showed a marginal decline in lending during the quarter.
The aggregate GCC gross banking loans reached a new record of $1.93 trillion, increasing by 1.2 percent or $23.5 billion during the quarter.
Outstanding net loan witnessed a slightly smaller growth of 1.1 percent during the quarter as a result of higher provisions booked during the quarter.
Despite a slowed growth rate, the GCC banking sector’s balance sheet continued to strengthen during the quarter. As compared to Q2-2022, aggregate assets increased by 1.2 percent during Q3-2022 to reach $2.9 trillion.
As compared to Q2-2022, conventional banks in the region saw their total assets grow by 1.4 percent, while listed Islamic banks saw their assets grow by 0.4 percent.
