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Gulf banks’ profits fell In 2020, credit allocations increased

Gulf Banks’ Profits

Most Gulf leading banks’ profits were affected by the Coronavirus pandemic, especially their consolidated net profits. The pandemic also caused a rise in their allocations.

The percentage of consolidated net profits in the last nine months of 2020 decreased by 24.02%, to reach $11.7 billion, compared to $15.4 billion in 2019.

Banks’ credit allocations increased to $5.7 billion, compared to $3.5 billion in 2019.

Qatar National Bank, Al Rajhi Bank, First Abu Dhabi Bank, Emirates NBD, National Bank of Kuwait are the largest banks in the gulf.

Gulf banks’ profits

The financial data of the major Gulf banks showed that the net profits of the Qatari National Bank decreased by 16%, to $3.3 billion.

Experts previously expected the Qatar National Bank  to achieve profits of $3.2 billion and a decline of 18%, during 2020.

Al-Rajhi Bank’s net profits exceptionally rose by 4% to $2.9 billion, while First Abu Dhabi Bank’s net profits fell by 16%, to $2.9 billion.

Financial data also showed a significant decline for Emirates NBD Banks, by 52%, to $1.9 billion.

The net profit of National Bank of Kuwait decreased by 39%, to $810 million.

Expectations

Experts previously expected First Abu Dhabi Bank (FAB) to record profits of $2.5 billion, down by 25%.

Emirates NBD was expected to decline by 55% and earn $1.8 billion.

Gulf banks also raised their credit allocations, during the last nine months of 2020, to $5.7 billion, compared to $3.5 billion in 2019.

Qatar National Bank increased its provisions by 83% to $1.6 billion. Al-Rajhi Bank increased its provisions by 22% to $584 million while the First Abu Dhabi Bank to $2.2 billion, an increase of 65%.

National Bank of Kuwait’s allocations increased by 90%, to reach $640 million.

Financial data also showed that the Qatar National Bank distributed dividends of $1.1 billion, including 45% of the capital. First Abu Dhabi Bank  distributions reached $2.2 billion, or 74% of the capital.

Emirates NBD Bank distributed $688 million, including 40% of the capital. The National Bank of Kuwait distributed $356 million, or 20% of the capital. Al-Rajhi Bank did not announce any cash dividends.

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