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.
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.
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.