UAE-listed banks lead GCC in Q-o-Q growth in 2024 at 5.6%

UAE-listed banks

The latest report by Kamco Invest reveals that UAE-listed banks have emerged as leaders in the GCC banking sector, showing impressive quarter-on-quarter (Q-o-Q) growth of 5.6% in 2024. Despite global economic challenges, the bottomline performance of the GCC banking sector remained stable, with a healthy Q-o-Q growth of 11.8% and a year-on-year (Y-o-Y) growth of 10.5%, reaching $14.4 billion in the first quarter of 2024.

Analyzing financial data from 57 listed banks in the GCC for Q1-2024, the report highlights UAE-listed banks' significant contribution to the sector's growth. With total customer deposits reaching USD 803.2 billion, UAE banks have demonstrated resilience and strength, maintaining their position as leaders in the region.

The report underscores UAE's dominance in key financial metrics, such as Net Interest Margin (NIM) and Return on Equity (RoE). UAE-listed banks recorded the highest NIM in the GCC, standing at 3.49% in Q1-2024, slightly lower than the previous quarter but still outperforming their Gulf counterparts. This indicates the robust liquidity position of UAE banks, enabling them to capitalize on tightening interest rates and achieve sustainable profitability.

Furthermore, UAE banks also excelled in RoE, with a remarkable figure of 16.9% at the end of Q1-2024, surpassing Saudi Arabian and Qatari banks. The significant year-on-year growth in RoE for UAE banks, driven by increased profits and moderate growth in shareholders' equity, underscores their strong performance and strategic positioning in the market.

The report's findings reflect the resilience and adaptability of UAE's banking sector amidst evolving economic dynamics and regulatory changes. Despite challenges posed by global economic uncertainties, UAE banks have demonstrated resilience, agility, and a commitment to delivering value to shareholders and customers alike.

Looking ahead, continued vigilance and strategic planning will be crucial for sustaining growth momentum and navigating potential challenges. By leveraging their strong fundamentals, technological innovation, and customer-centric approach, UAE-listed banks are well-positioned to maintain their leadership position in the GCC banking sector and drive sustainable growth in the years to come.