In this report, KPMG professionals have analyzed the financial results of leading listed commercial banks from each GCC country — the Kingdom of Bahrain (Bahrain), the State of Kuwait (Kuwait), the Sultanate of Oman (Oman), the State of Qatar (Qatar), the Kingdom of Saudi Arabia (Saudi Arabia or KSA) and the United Arab Emirates (UAE). The financial results and selected key performance indicators (KPIs) of the 52 leading GCC banks’ for the year-ended 31 December 2022 are summarized and compared with the prior year (year ended 31 December 2021).
The 2022 report, titled 'Cautious optimism' , highlights some of the key financial trends include
- Robust asset growth
- Strong profitability increase
- Improved Net Interest Margins (NIM) Stable Non-Performing Loan (NPL) ratios Reduced loan impairment
- Continuous cost efficiencies
- Steady share prices
2022 emerged as a year of stability post recovery from an unprecedented period where the banking sector bore the brunt of the COVID-19 pandemic, and which was reflected in bank results. The GCC banking sector continued to maintain resilience and build on the proactive and timely measures taken by banks, coupled with effective government support, to ensure stability in the sector.
Looking forward, the key predictions for the sector in 2023 that are explored in this report are:
- Effective NPL management
- Strong regulatory oversight
- Cautious and selective lending
- Pressure on NIMs
- Overall sense of 'cautious optimism'
- Cost and operational efficiencies
- Focus on ESG
- Digital transformation
- Further consolidation
We hope that our analysis, insights and predictions will continue to help drive banking strategies and shape the industry across the region.
