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Lending activities in Gulf banks grows by 7.1%

Lending activities

Lending activities in listed banks in the Arab Gulf states grew by 7.1% on an annual basis in the second quarter of this year.

According to the Kuwaiti Kamco Invest company, the growth of lending activities reached $1.68 trillion.

The company indicated, in a report, that the strong growth of loan books amounted to 4.6% compared to the first quarter of the year.

The report stressed that the Gulf markets witnessed continuous and broad-based growth.

Lending activities

The net value of loans, according to the report, grew by 4.8% compared to the first quarter of the year, reaching $1.6 trillion, while customer deposits in the Gulf countries grew by 4.6%, reaching $2 trillion.

Saudi banks achieved the highest growth rate at a successive pace in customer deposits, while deposits in Qatari banks declined marginally by 0.1%.

The loan-to-deposit ratio for the banking sector improved marginally on a quarterly basis by 20 basis points to reach 80.4%, the highest ratio witnessed by that rate over the past five quarters, but it is still lower than pre-pandemic levels.

The total assets of the Gulf banking sector during the second quarter of the year reached a new record level of $2.64 trillion, with a growth of 6.7% year on year.

UAE banks

Emirati banks topped the list of asset acquisitions with $840 billion, equivalent to a third of the assets of Gulf banks, followed by Saudi banks with $771 billion, equivalent to 26.7% of the sector’s total assets.

Net profits of Gulf banks rose stable at $8.3 billion during the quarter, a growth of 82.8% year-on-year, and an increase of 0.3% compared to the previous quarter.

Saudi banks recorded the highest quarterly growth rate in net loans during the second quarter. They recorded a growth of 13.1%, followed by Bahraini and Kuwaiti banks, which recorded growth rates of 3.4% and 2.8%, respectively.

Bahrain Stock Exchange

In another context, the value of investors from the Gulf countries traded on the Bahrain Bourse amounted to $212 million during 2020, according to a statement by the Bourse.

The Bahrain Bourse also said that the total transactions of investors last year amounted to $1.127 billion, of which $843 million were for Bahraini citizens.

While the total investments of Gulf nationals in the Bahrain Bourse amounted to $212 million, and $71 million for multiple nationalities.

The Bourse also clarified that the brokers executed more than 19,000 transactions to trade 1.2 billion shares in 2020, as the value of purchases by Bahraini investors, including individuals and companies, amounted to about 76% of the value of the traded shares, while their sales amounted to about 74% of the total sales.

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