GCC banks drive momentum and transformation with strong growth: KPMG Report
Doha, Qatar – KPMG in Qatar has released the tenth edition of its GCC Listed Banks' Results Report, providing an in-depth analysis of the financial performance and key indicators of leading commercial banks across the region. Titled Momentum and Transformation, this year's report highlights the sector's resilience, strategic adaptability, and sustained expansion despite global economic shifts.
Bringing together insights from Financial Services leaders across KPMG's member firms in the six GCC countries, the report offers valuable perspectives on the evolving banking landscape, emerging industry trends, and financial outlook. By analyzing key performance indicators from the past year, the report aims to support banking leaders in shaping strategies and driving long-term growth.
Omar Mahmood, Head of Financial Services for KPMG in the Middle East, South Asia, Caucasus and Central Asia, and Partner at KPMG in Qatar, commented,"The GCC banking sector remains a pillar of economic stability and growth, demonstrating resilience in the face of macroeconomic uncertainties. The sector's ability to maintain strong capital positions, enhance asset quality, and embrace digital transformation underscores its commitment to sustainable progress. Looking ahead, we expect a continued focus on managing non-performing loans, cost control, and the integration of AI and ESG principles into banking strategies, ensuring long-term competitiveness and stability."
The report highlights strong asset growth across GCC banks, supported by robust capital adequacy ratios. Profitability saw a notable increase, driven by higher interest margins and disciplined cost control, while net interest margins (NIMs) remained stable despite economic fluctuations. Non-performing loan (NPL) ratios declined, reflecting prudent credit risk management, and cost-to-income ratios remained among the lowest globally, emphasizing continued operational efficiency. Investor confidence has also been reinforced, with bank share prices showing stability in a volatile market.
In Qatar's banking sector, this year's report reaffirms Qatar National Bank's position as the largest bank in the GCC by assets, reaching USD 356 billion. Qatar also continues to lead the region with the lowest cost-to-income ratio at 25.6 percent and the highest coverage ratio for stage 3 loans at 85.1 percent, reflecting strong financial resilience.
Across the GCC, profitability increased by 10.5 percent, driven by loan book growth, stable interest margins, lower loan impairments, and ongoing cost-efficiency measures. Total assets increased by 9.2 percent, supported by lending to high-quality customers. While net interest margins saw a slight dip of 0.1 percent, the overall NPL ratio improved, decreasing by 0.3 percent to 3.3 percent, signaling a continued conservative approach to credit risk management.
Return on Assets (ROA) (1.5 percent in 2023) slightly increased by 0.04 percent compared to the previous year reflecting stable profitability relative to asset growth. Cost-to-income ratios remained stable compared to 2023 at 39%, reflecting the continued focus on cost reductions and operating efficiency. Moreover, the average coverage ratio for stage 3 loans remained broadly in line with prior year at 67%, highlighting the listed banks' cautious provisioning approach.
Looking ahead, KPMG predicts that the GCC banking sector will continue evolving with an increased focus on AI and automation to enhance operational efficiencies, alongside the strengthening of ESG frameworks to embed sustainability within banking strategies. The rise of regulatory technology (RegTech) is expected to support compliance and risk management, while further industry consolidation will likely foster stronger and more competitive financial institutions. Additionally, balance sheet growth is projected to accelerate, driven by strategic investments and effective risk management, ensuring sustained financial stability and resilience.
By offering data-driven insights and forward-looking perspectives, KPMG's Momentum and Transformation report serves as a valuable resource for banking leaders, regulators, and policymakers navigating an increasingly complex financial landscape.
For more information, please contact:
Huda Ibrahim – hudai@kpmg.com
Bassel Abou Ayash – babouayash@kpmg.com
For additional details about KPMG in Qatar and our privacy policy, visit www.kpmg.com.
About KPMG in Qatar
KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited ('KPMG International') operate and provide professional services. 'KPMG' is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.
KPMG firms operate in 142 countries and territories with more than 275,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.
KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
For more detail about our structure, please visit kpmg.com/governance.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
8 hours ago
- Zawya
US tariffs, lower oil prices may slow down FDI flows into GCC: Report
Foreign direct investment (FDI) inflows into the GCC region are expected to slow down in 2025 after a decade of rapid growth, S&P Global Market Intelligence said in its latest outlook report. The slowdown is attributed to investor uncertainties, reflecting changing US trade policies, lower oil prices, and a more gradual development of GCC diversification projects. In the near term, the report forecasts a net negative impact on global FDI, primarily due to the indirect repercussions of US tariffs, a weaker oil price outlook and reduced global investor confidence. Lower oil prices, reflecting expectations of weaker oil demand and increasing OPEC supply, are likely to constrain the foreign exchange earnings generation capacity of large MENA hydrocarbon exporters. This, in turn, will limit their capacity to act as major investors in other countries within the region. While the GCC states have committed to investing large amounts of FDI in the US economy, such outflows are likely to reduce capital available for investment in non-GCC MENA states, which remain 'attractive venues' for renewable energy and tourism developments, the report said. According to S&P Global Market Intelligence, FDI in the region has shifted from hydrocarbons to infrastructure, renewable energy, logistics, tourism, and construction. This is likely to continue, complemented by areas such as auto sector investments in Morocco, but aggregate flows are likely to remain dominated by GCC states. However, a weaker US dollar could support the external competitiveness of GCC countries with currencies pegged to the dollar, the report said.
Arabian Business
a day ago
- Arabian Business
Abu Dhabi's AD Ports Group and Bahrain's ASRY sign three LoIs
Abu Dhabi's AD Ports Group has signed three letters of intention with the Manama-based Arab Shipbuilding & Repair Yard Company (ASRY) for the provision of marine services in Bahrain, and to collaborate on strategic maritime and ports projects. These agreements come after Noatum Maritime, part of AD Ports Group's Maritime & Shipping Cluster, formed a joint venture (JV), ASRY Marine, with ASRY. The new company will be focused on providing integrated marine services in Bahrain. AD Ports and ASRY deepen strategic ties AD Ports Group has now signed a Head of Terms (HoT) to establish a new JV to manage drydock facilities and shipyards. The JV company seeks to enhance drydocking and shipbuilding capabilities within the GCC and explore opportunities in other regions. The two parties signed a second letter of intent with India-based JM Baxi, which is in marine services, ports, logistics, and technology. This agreement focuses on creating green ship recycling facilities to promote a circular economy by repurposing parts and minimising waste. JM BAXI is known for promoting and implementing sustainable practices in green recycling and supports the implementation of the Hong Kong Convention, a global standard for responsible ship recycling. The final HoT seeks to explore joint investment opportunities within ports and terminals. Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, commented: 'Following the successful formation of our recent joint venture with ASRY, we look forward to deepening our collaboration across the maritime realm. 'We have already developed strong working ties, and this agreement opens the door to create more value and growth across our operations. Exploring opportunities to establish green ship recycling facilities is also very important for us, ensuring that vessels are retired in a safe and environmentally responsible manner.' Dr Ahmed Al Abri, CEO, ASRY, added: 'We are proud to enhance and expand our strategic partnership with AD Ports Group through these new agreements. By combining our shared expertise and advanced infrastructure, and in line with global shifts in the maritime industry, we aim to strengthen our capabilities in drydocking and shipbuilding across the GCC and beyond. 'We also look forward to developing green ship recycling capacities and entering a vital new field in port management and operation. These initiatives reflect our ongoing commitment to a culture of innovation, operational excellence, and driving growth in the maritime sector.'
Channel Post MEA
a day ago
- Channel Post MEA
UAE Travel Brands Taking Proactive Steps To Defend From Fraudulent Emails
Proofpoint has released new research revealing that 85% of the top online travel sites in the UAE have adopted Domain-based Message Authentication, Reporting and Conformance (DMARC), a key email security protocol that helps protect users from email fraud. However, only 45% of these sites have implemented it at the highest enforcement level of 'reject,' which actively blocks unauthorised emails from reaching inboxes. The findings are based on a DMARC adoption analysis of the top 20 online travel sites in the UAE, and across Europe and the Middle East. DMARC is an email validation protocol designed to protect domain names from being misused by cybercriminals. It authenticates the sender's identity before allowing a message to reach its intended destination. DMARC has three levels of protection – monitor, quarantine and reject, with reject being the most secure for preventing suspicious emails from reaching the inbox. With travel demand in the UAE continuing to rise, a recent KPMG study found that 77% of UAE travellers use mobile apps or hotel booking services, increasing the volume of digital interactions between consumers and travel brands. But as consumers eagerly plan and book their getaways, this surge in activity – coupled with a high volume of emails and promotional offers from travel companies – creates a perfect storm for cybercriminals, turning dream holidays into costly scams through sophisticated email fraud. Key findings include: The UAE demonstrates stronger foundational email security adoption compared to its European counterparts, with 85% of the top travel sites publishing a DMARC record, reflecting growing awareness of cybersecurity best practices across the country's travel sector. However, there is room for improvement with only 45% of the UAE's top travel sites using the policy at 'reject' level, meaning 55% are leaving their customers, staff, and partners more vulnerable to receiving fraudulent emails impersonating these brands. On average, 88% of the top travel websites across Europe and the Middle East have published a basic DMARC record. However, only 46% of all travel sites analysed are at reject, meaning 54% of the top travel sites across the regions are leaving customers at risk of email fraud. 'Holiday bookings often represent a significant number of high-value financial transactions and bring experiences of high personal and emotional value; this combination makes travellers prime targets for cybercriminals. Attackers actively use sophisticated email fraud, especially during peak holiday season, to exploit vulnerabilities,' says Matt Cooke, cybersecurity strategist, Proofpoint. 'Fake booking confirmations, too-good-to-be-true deals, and urgent payment requests for supposed flight changes are common tactics. These fraudulent communications can appear highly convincing, putting travellers' finances and personal data at risk.' 'Travel companies bear a social responsibility to do everything they can to stop convincing scam emails being sent in their name, to holidaymakers,' continues Cooke. 'Implementing DMARC technology to its fullest level of 'reject' allows travel companies to massively reduce the risk of that happening, protecting both their brand and all of the holidaymakers at the same time., it's a win-win.' Proofpoint advises consumers to follow these tips to stay safe when booking and managing travel online: Secure your bookings – and your accounts. Use strong, unique passwords for travel accounts and booking sites. Enable multi-factor authentication (MFA) wherever possible to add an extra layer of security. Watch out for fake travel deals – and websites. Be wary of unsolicited offers that seem too good to be true. Scammers create convincing fake websites for airlines, hotels, or comparison sites to steal money and credentials. Always book through official sites or reputable, verified agents. Navigate away from phishing trips – and smishing scams. Stay alert to phishing emails or smishing (SMS phishing) messages regarding flight changes, booking confirmations, or visa applications that demand urgent action or personal details. These often lead to fake login pages designed to capture your information. Don't get detoured by suspicious links. Avoid clicking directly on links in unsolicited emails, social media messages, or pop-up ads, especially for special offers or urgent alerts. Instead, type the official website address directly into your browser. Check reviews before You book. Fraudulent travel offers, websites, and apps can look deceptively genuine. Before providing payment details or downloading a new travel app, invest time in researching the company, reading independent online reviews, and checking for customer complaints.
