GCC bank profits fall

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The earnings of GCC banks covered by Gulf Investment House fell by 0.7 per cent on a year-on-year basis to $5.6bn in the first quarter of 2016, the Kuwait investment bank said in a report released today.

The aggregate net profit of banks in Kuwait fell by 10.1 per cent, the biggest drop in the region in the period.  Profits of UAE banks fell 7.7 per cent.

Net profits of banks in Saudi Arabia and Qatar rose 6.6 per cent and 1.7 per cent, respectively.

Total loans extended by GCC banks under Gulf Investment House coverage rose by 8.7 per cent year-on-year to $809bn in the quarter.

The total assets of GCC banks under Gulf Investment House coverage rose 5.6 per cent to $1.3tn. “Qatar-based banks witnessed the strongest growth in total assets (11.8 per cent year-on-year), followed by banks in UAE (6.8 per cent), KSA (2.2 per cent),” Gulf Investment House said.

The assets of Kuwaiti banks grew by 0.7 per cent.