UAE Banks Outperform in Return on Equity in Q1 2024: Gulf Cooperation Council’s Banking Sector Performance

In the first quarter of 2024, the UAE’s banks outperformed their regional counterparts in terms of return on equity, with a rate of 16.9%. This was followed closely by Saudi and Qatari banks, which recorded returns on equity of 12.8% and 12.7%, respectively, according to a report by “Kamco Invest” on the Gulf Cooperation Council countries’ banking sector performance.

The UAE’s listed banks saw the most significant year-on-year growth in return on shareholders’ equity, driven by higher profits and a relatively smaller increase in total shareholders’ equity. Kuwaiti banks maintained a strong return on equity at 10.4%, while Bahraini and Omani banks recorded returns of 9.6% and 8.7%, respectively. Despite declining revenues, the Gulf banking sector’s net profit grew by an impressive 11.8% on a quarterly basis and 10.5% annually, reaching $14.4 billion in the first quarter of 2024.

Listed banks in the UAE had the highest growth rate in deposits on a quarterly basis, reaching $803.2 billion. Omani, Saudi, and Qatari banks also experienced growth in customer deposits during the same period. The UAE ranked first in the Gulf for net interest margin, followed closely by Saudi, Qatari, and Kuwaiti banks. Total loans provided by Gulf banks increased on a quarterly basis, driven primarily by growth in Saudi and UAE banks in particular. However, despite this increase in loans provided