Modest rise in GCC bank third quarter net earnings: Gulf Investment House

For full coverage of business developments in Iran and the Middle East, see MEED

Net earnings of GCC covered by Gulf Investment House increased 3.7 per cent year-on-year to $5.6bn in the third quarter of 2015.

Net profit of banks in the Kuwait increased the most (12.2 per cent year-on-year), followed by UAE (3.1 per cent year-on-year), KSA (2.7 per cent year-on-year) and Qatar (1.8 per cent year-on-year).

The collective loans disbursed by GCC banks covered by Gulf Investment House increased by 8.7 per cent year-on-year to $778.5bn in the third quarter.

However, margins remained under pressure on year-on-year basis due to a 20 basis points decline in the yield on assets, leading to 14 basis point shrinkage in non-interest margins. The net interest income of GCC banks increased 4.5 per cent year-on-year.

Non-interest income of GCC banks fell 5.9 per cent year-on-year during the quarter due to decline in fee income.

Total assets of GCC banks covered by Gulf Investment House expanded 7.9 per cent year-on-year to $1.2trn in the third quarter.