GCC Listed Banks Report Net Profit of $16.2 Billion in Q2

The net profits reported by listed banks in the GCC reached a new record high of $16.2 billion during Q2-2025, an increase for the second consecutive quarter with a growth of 3.7% while y-o-y growth stood at a strong 9.2%, according to new research by Kuwait-based Kamco Invest.

The report, which analysed the financials reported by 56 listed banks in the GCC for the quarter ended Q2-2025, said that the sequential increase was once again mainly led by a broad-based increase in revenues for the sector and lower cost-to-income ratio that more than offset an increase in impairments during the quarter.

The top line growth for the sector reflected continued lending growth as economic fundamental remain strong in the region backed by a healthy pipeline of projects, the report said.

At the country level, the q-o-q growth remained largely positive with five out of six country aggregates showing a sequential growth in net income while the aggregate for the Bahraini banking sector showed a decline.

Kuwaiti-listed banks showed the biggest absolute growth in net profits with an increase of $204.6 million or 15.6% mainly led by reversal of provisions reported by three out of nine listed banks on the exchange.

The UAE and Saudi banks were next with net profit growth of $191.8 million (+3.2%) and $152.3 million (+2.6%), respectively. The y-o-y growth in net income was also positive across the board with double-digit growth in profits for Saudi and Bahraini banks further supported by healthy growth in profits for banks in Oman and Kuwait.

In terms of top line performance, aggregate banking sector revenues reached a new record high during the quarter at $35.6 billion, after registering a healthy q-o-q growth of 3.6%. The growth was led by a broad-based increase in revenues reported by banks across country aggregates that more than offset an 8.2% decline reported by Bahraini banks. The UAE-listed banks led the way during the quarter with a revenue growth of 5.3% or $674 million during Q2-2025 as compared with the Q1-2025.

Lending Growth Remains Resilient

Lending growth remained resilient during the quarter, registering an increase of 3.4%, the second-biggest q-o-q growth in 16 quarters, reaching $2.23 trillion at the end of the second quarter of this year.

The growth reflected resilient non-oil sector growth in the region with non-oil manufacturing consistently well above the growth mark for key economies in the region. Gross loans also showed a healthy growth of 3.3% during the quarter, the report said.

Kuwaiti banks witnessed the strongest q-o-q increase in outstanding credit facilities during Q2-2025 with a growth of 2.9% followed by Saudi Arabia and Oman with similar growth of 2.7% and 2.2%, respectively.

Data for Q1-2025 for the UAE banks showed a q-o-q growth of 2.7% supported by a slightly faster growth in personal loans to residents.

The Q2-2025 credit sentiment survey from the Central Bank of UAE showed that the quarter saw moderating credit growth led by steady demand from both individuals and businesses underpinned by strong economic conditions, rising household incomes, and a supportive investment climate.

The CBUAE report also said that Dubai witnessed the strongest growth in business lending while Abu Dhabi recorded the largest increase in personal loans. In terms of sectors, property development registered the strongest growth followed by retail and wholesale trade, construction, and manufacturing, Kamco Invest said in its report.