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GCC banks’ earnings continued to rise in the first quarter of the year despite a quarter-on-quarter decline in revenues, supported by lower impairments.
Total net income of listed lenders in the region reached $14.4 billion during the quarter, up from approximately $13.1 billion posted a year earlier and $12.9 billion in the previous quarter, Kamco Invest said in a recent report.
“The strong growth came despite a fall in revenues during the quarter and reflected a fall in total operating expenses coupled with a steep fall in quarterly impairments,” the asset management firm noted.
During the quarter, banks in the region booked $2.3 billion in loan loss provisions, marking a five-year low.
The strong growth reflected a fall in total operating expenses, coupled with a steep decline in quarterly impairments.
Total assets reached approximately $3.3 trillion, up from $3 trillion a year ago. Net loans grew to $1.92 trillion from $1.8 trillion over the same period.
Overall, revenues for the sector reached $31.4 billion, down from a record high of $32 billion during the last three months of 2023. Revenues for the quarter, however, were higher than the $28.7 billion recorded in the same period last year.
The quarter-on-quarter fall in revenues came from the decline in net interest income, as well as non-interest income.
(Writing by Cleofe Maceda; editing by Brinda Darasha)
