Doha, Qatar: The aggregate net interest income reported by banks listed in the Gulf Cooperation Council (GCC) reached a new record high of $22.1bn during the third quarter (Q3) of this year. The quarter-on-quarter (q-o-q) growth came in at a four-quarter high level of 2.8% while the year-on-year (y-o-y) growth stood at 5.3%.
Qatari banks recorded the biggest increase of 6.2% during the quarter with net interest income reaching $3.5bn. Saudi-listed banks were next with a growth of 3.5% to register net interest income; Omani and UAE listed banks also reported growth of 1.2% and 1.8% respectively, during the quarter while Kuwaiti banks showed flattish growth in net interest income, noted Kamco Invest in a recent report.
The impact of elevated central bank rates was reflected in the increase in net interest income for listed banks in the GCC.
The quarter reported one of the highest quarterly total interest incomes that reached $54.2bn with yield on credit averaging at 4.2%, slightly below the peak seen over the last four quarters.
The total bank revenues witnessed a healthy q-o-q growth during Q3-2024 that came in at a three-quarter high level of 4.1% after a much smaller growth of 1.2% during the previous quarter.
The growth was led by higher net interest income and a stronger growth in non-interest income.
Total bank revenues reached $32.9bn during the quarter backed by growth in all countries in the GCC. Saudi Arabia recorded the strongest q-o-q growth in total bank revenues at 6.2% followed by Qatar and Oman each with a growth of 5.8%. UAE-listed banks also recorded healthy q-o-q growth of 3.9%, the report stated.
Meanwhile the total non-interest income increased by a 3-quarter high level growth of 6.9% during Q3-2024 reflecting broad-based growth in almost all countries in the GCC. Barring Kuwait that recorded a 14.6% decline in non-interest income, rest of the GCC country aggregates witnessed healthy growth during the quarter. Omani banks registered the biggest q-o-q growth at 16.8% followed by Saudi Arabian and UAE-listed banks with q-o-q growth of 12.4% and 7.5%, respectively. Qatari banks also reported a healthy growth of 4.9% during the quarter.
The aggregate lending by listed banks in the GCC also continued to show q-o-q growth during Q3-2024, backed by growth in all GCC markets. Aggregate gross loans reached a new record high of $2.12 trillion after registering the strongest q-o-q growth in thirteen quarters at 3.1% while the y-o-y growth came in at 10.1%. Banks in Saudi Arabia reported the biggest q-o-q gross loan growth in nine quarters during Q3-2024 mainly led by healthy lending in almost all sectors. Gross loans growth for Saudi-listed banks came in next at 3.7% to reach $737.4bn during Q3-2024, it further said.
Omani and UAE-listed banks were next with lending growth of 3.6% and 3.4%, respectively, while Qatari banks registered a growth of 2.5%.
In terms of type of banks, both Islamic banks and conventional banks reported almost equal growth in lending during the quarter at 3.2% and 3.1%, respectively. Aggregate gross loans for conventional banks stood at $1.5 trillion while Islamic banks loan book stood at $631bn.
