Latest news with #KamcoInvest
Al Etihad
3 days ago
- Business
- Al Etihad
UAE stock markets report steady gains in May despite global volatility
1 June 2025 19:12 A. SREENIVASA REDDY (ABU DHABI)The UAE equity markets closed May 2025 on a positive note, with both the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) recording gains, despite volatility in global markets, according to the monthly market report from Kamco combined market capitalisation of the two bourses rose as investors gained confidence from steady earnings, increased liquidity, and sector-specific momentum. The report highlights that both exchanges remained among the more resilient performers in the GCC during the month.'Equity markets in the GCC region remained volatile during May replicating the trend in the broader global financial markets. Almost all markets in the region witnessed gains during the month, but a 5.8% decline in the TASI (Saudi index) dragged the MSCI GCC index into the red with a decline of 2.6% during the month,' Kamco Invest ADX General Index registered a monthly gain of 1.6%. The index closed at 9,685.1 points in May, bringing its year-to-date performance for 2025 to 2.8%.According to Kamco Invest: 'Sectoral performance on the exchange was evenly split, with five out of 10 sector indices registering declines, while the remaining five recorded gains.'The overall gain in the FTSE ADX General Index was driven by advances in the Energy, Financial, Real Estate, and Utilities Indices. The Energy Index posted the steepest gain, climbing 4.4%, as two out of the four constituent companies recorded share price increases, led by a 7.7% rise in ADNOC Distribution's share price during the month. The Utilities Index followed closely with a gain of 3.8%, supported by a 3.8% share price increase in its sole constituent company, Abu Dhabi National Energy Co, during terms of monthly stock performance, Presight AI led the gainers' chart for May-2025 with a substantial 32.5% increase in its share price. It was followed by Phoenix Group and Sudatel, which recorded gains of 18.4% and 15.9%, respectively. On the decliners' side, Al Wathba National Insurance Company registered the sharpest fall, with a 24.8% drop in its share price during May, followed by Insurance House Co. and United Arab Bank, which posted declines of 13.1% and 10.7%, activity on the exchange was robust but subdued during May. Total volume of shares traded declined by 8.1%, reaching 6.9 billion shares, compared to 7.6 billion shares in April. Conversely, the total value of traded shares rose by 18.2%, amounting to Dh30.6 billion in May, up from Dh25.9 billion in the previous month. ADNOC Gas topped the most active stocks by volume with 1.4 billion shares traded, followed by Multiply Group and Phoenix Group, which recorded trading volumes of 1 billion shares and 499.5 million shares, respectively. In terms of value traded, ADNOC Gas also led with Dh4.6 billion worth of shares changing hands, followed by International Holdings Company and Al Dar Properties, with traded values of Dh 4.56 billion and Dh2.8 billion, DFM General Index recorded its second consecutive monthly gain in May, rising by 3.3% to close the month at 5,480.5 points. This increase brought the index's year-to-date performance for 2025 to 6.2%.Sectoral performance was entirely positive, with all eight sector indices posting gains during the month. The Materials Index posted the steepest gain at 9.1%, followed by the Industrial Index, which advanced 6.2%. The Financial Index improved by 4.4% in May, mainly supported by double-digit gains in several key companies within the sector, including Dubai Insurance Co (+24.8%) and Naeem Investment Holding (+14.8%). Meanwhile, the Real Estate Index — the largest weighted index among the DFM indices — registered a marginal uptick of 0.1% during the month. Slight share price increases in companies such as Tecom (+1.6%) and Emaar Properties (+0.4%) contributed to the overall marginal improvement of the Real Estate Index. The Utilities Index rose by 0.8% with a 1.9% increase in the share price of DEWA helped offset a 5.0% decline in Empower and a 1.1% drop in to Bloomberg's monthly stock performance data, Amlak Finance led the list of top gainers in May with a notable 30.2% surge in its share price. It was followed by Dubai Insurance and Naeem Investment, which recorded gains of 24.8% and 14.8%, respectively. Trading activity on the exchange was mixed in May. The total volume of shares traded declined by 3.6%, reaching 4.5 billion shares compared to 4.7 billion shares in April. In contrast, the total value of shares traded rose by 17.5% to Dh 15.1 billion in May against Dh12.8 billion in April. DEWA topped the monthly trading volume chart, with 994.1 million traded shares followed by Salik and Talabat at 465.7 million and 397.4 million shares, respectively. In terms of trading value, Emaar Properties led with Dh 3.1 billion worth of shares traded, followed by DEWA and Salik at Dh 2.7 billion and Dh 2.6 billion, respectively.
Khaleej Times
3 days ago
- Business
- Khaleej Times
UAE banks spur GCC profit surge with $639.6m Q1 growth
The UAE banking sector has emerged as a standout performer in the GCC in the first quarter of 2025, posting the largest absolute growth in net profits at $639.6 million, an 11.8 per cent increase year-on-year, according to data provided by Kamco Invest. This robust performance contributed to the GCC banking sector's record-high net profits of $15.6 billion, reflecting a 7.1 per cent quarter-on-quarter (q-o-q) and 8.6 per cent year-on-year (y-o-y) growth. Despite a decline in net interest income, UAE banks leveraged higher non-interest income, lower operating expenses, and a sharp seasonal drop in impairments to drive this growth, underscoring the sector's resilience amid evolving economic conditions, analysts at Kamco Invest said. The UAE's banking sector benefited from a dynamic economic backdrop, with outstanding credit facilities surging 24.1 per cent y-o-y in February 2025, outpacing Saudi Arabia's 16.3 per cent growth, as per central bank data. This lending boom, driven by a strong project pipeline and resilient non-oil sector growth, saw net loans in the GCC rise 4.1 per cent q-o-q to $2.2 trillion, the highest in 15 months. Financial sector experts said amid tighter liquidity and shifting deposit trends faced by the GCC banking sector, UAE banks are well-positioned to capitalise on regional opportunities, particularly in project finance and real estate. With a strong economic foundation and strategic lending, the UAE continues to set the pace for banking excellence in the region, driving sustainable growth in 2025, they pointed out. UAE-listed banks contributed $20.1 billion to this growth, a 3.2 per cent q-o-q increase, reflecting robust demand across sectors like real estate, construction, and services. However, aggregate contract awards in the GCC dipped 26.8 per cent y-o-y to $52.4 billion, though the UAE and Kuwait bucked the trend with healthy growth. Despite a 1.7 per cent q-o-q decline in GCC net interest income to $22.8 billion, driven by rate cuts in the second half of 2024, UAE banks mitigated the impact through diversified revenue streams. The aggregate yield on credit in the GCC fell to 4.16 per cent from 4.21 per cent in Q4-2024, reflecting lower interest rates. UAE banks, however, maintained revenue growth of 0.6 per cent q-o-q, reaching a share of the GCC's record $34.6 billion in banking revenues. Non-interest income, including fees from advisory services and wealth management, played a pivotal role in offsetting the decline in interest-based earnings. Customer deposits in the UAE surged to $903.8 billion, a 6.7 per cent q-o-q increase, outpacing the GCC's 5.1 per cent growth to $2.65 trillion. This deposit growth, driven by financial market volatility, bolstered liquidity but led to a decline in the loan-to-deposit ratio to 67.3 per cent ---- the lowest in the GCC --- down 220 basis points from Q4-2024. This shift reflects improved asset utilisation and a strategic pivot towards high-yield lending, with UAE banks increasingly financing projects in Saudi Arabia to support yields, according to Bloomberg. The UAE's economic vitality is evident in its manufacturing activity, with a PMI of 54.0 points in March 2025, slightly below Saudi Arabia's 58.1 but ahead of Qatar's 52.0 and Kuwait's 52.3, per Bloomberg's Markit Whole Economy Surveys. Dubai's PMI stood at 53.2, signaling steady growth driven by new orders and output. This aligns with the UAE's non-oil sector expansion, which supports lending growth in sectors like real estate (up 2.5 per cent q-o-q in Kuwait, a comparable market) and construction. While Saudi banks led in lending growth with a 5.5 per cent q-o-q increase to $801.5 billion, the UAE's strategic focus on diversification and high-yield opportunities positions it as a regional leader. Challenges remain, including pressure on funding costs, with GCC banking sector costs at 3.83 per cent in Q1-2025, and a decline in low-cost CASA deposits to 52 per cent from 54 per cent in Q4-2024. However, the UAE's ability to navigate these pressures through operational efficiency and non-interest income growth highlights its adaptability.
Arab News
27-05-2025
- Business
- Arab News
GCC banks post record $15.6bn profit in Q1 amid lending boom, stable forecast
RIYADH: Gulf Cooperation Council banks posted $15.6 billion in net profit for the first three months of 2025, a 7.1 percent rise from the previous quarter and the highest on record. According to a report by Kuwait-based Kamco Invest, the strong performance was supported by higher non-interest income, a sharp drop in loan impairments, and lower operating expenses. This came despite a decline in net interest income, which fell for the first time in eight quarters. The UAE posted the highest quarterly increase in net profit, with earnings rising by $639.6 million compared to the previous quarter, followed by gains in Saudi Arabia and Bahrain. On an annual basis, year-on-year growth was mixed across the region. While Saudi banks recorded a strong 17.2 percent increase in net income, banks in Qatar and Kuwait reported declines. Total revenues edged up just 0.04 percent to a record $34.6 billion, supported by resilient credit demand and a sharp decline in provisioning costs. According to the report, aggregate gross loans increased 3.6 percent, the fastest pace in 15 quarters, while customer deposits surged 5.1 percent to reach $2.65 trillion, underscoring continued liquidity strength across the region. However, interest earnings declined as the effects of rate cuts in the second half of 2024 began to take hold. Net interest income, the revenue banks earn from loans after subtracting what they pay on deposits, fell 1.7 percent to $22.8 billion. At the same time, the average yield on credit dropped to 4.16 percent, down from 4.21 percent. The latest performance underscores the GCC banking sector's resilience following several years of strong credit expansion, supported by government-backed infrastructure projects, low credit defaults, and high liquidity buffers. Unlike banks in developed markets that have grappled with rising delinquencies and interest rate volatility, lenders in the Gulf have benefited from robust capitalization, prudent risk management, and steady non-oil economic growth. The combination of stable monetary policy, rising consumer and corporate demand, and state-led diversification initiatives continues to differentiate the region's banking landscape, even as global financial conditions tighten. Saudi banks lead credit expansion Despite this decline, Saudi banks stood out for their substantial credit expansion. According to Kamco Invest, the Kingdom posted the region's highest year-on-year loan growth in the first quarter. This growth was broad-based, covering sectors such as construction, real estate, education, and transportation. Outstanding credit facilities in the nation reached SR3.1 trillion, according to the Saudi Central Bank. Kamco also noted that Saudi banks reported one of the highest loan-to-deposit ratios in the GCC, at 95.5 percent, during the first quarter, underscoring aggressive lending activity relative to deposit mobilization. Current and savings account balances stood at $561 billion, accounting for 63.3 percent of total deposits, indicative of a strong, low-cost funding base. However, external analysts have raised caution over potential funding constraints. A recent report by Bloomberg highlighted the growing pressure on Saudi banks to sustain deposit growth amid a tightening liquidity environment. In the absence of further expansion in CASA deposits, Bloomberg consensus forecasts suggest that lending growth in the Kingdom may decelerate to between 11 and 12 percent in 2025, compared to an estimated 14 percent last year. While project finance and mortgage lending continue to support overall loan book growth, Bloomberg noted that corporate overdrafts and trade finance facilities have shown volatility over recent quarters. According to Kamco's data, the region as a whole continues to show signs of balance sheet strength, with loan impairments falling by one-third to $2.1 billion. This drove the cost of risk down to 0.45 percent, among the lowest levels in recent years. Saudi banks recorded the lowest cost of risk at just 0.30 percent, benefiting from improved asset quality and a supportive economic environment. Operating expenses across the GCC also declined by 4.3 percent to $13.6 billion, helping maintain a cost-to-income ratio of 40 percent. GCC banks diversify income According to Kamco, return on equity remained strong across the board, averaging 13.6 percent for listed GCC banks. UAE banks posted the highest ROE at 16.6 percent, followed by Saudi Arabia at 13 percent and Qatar at 12.7 percent. However, net interest margins across the region dipped slightly to 3.10 percent from 3.14 percent due to the re-pricing of loans at lower rates. UAE banks retained the highest NIM at 3.34 percent. Even as interest income moderated, banks expanded their non-interest income, which included fees, commissions, and investment gains. Non-interest income rose 2.2 percent to $11.8 billion in the first quarter, led by UAE-listed banks with a 3.9 percent quarterly gain to $5.2 billion. According to the data presented in Kamco's report, this rising contribution from non-interest income implies a gradual diversification of GCC banks' revenue streams, helping offset margin compression and supporting profitability amid a more challenging interest rate backdrop. The performance of GCC banks stands in contrast to global banking trends, where high interest rates and tighter credit conditions have weighed on profitability. According to Kamco Invest, citing the International Monetary Fund, global credit risk is rising as borrowers face higher debt service burdens, with approximately $5.5 trillion in corporate debt maturing in 2024. This particularly affects the leveraged loan market, where default rates have increased. Meanwhile, Gulf banks benefit from strong capital buffers, low non-performing loan ratios, and government-backed infrastructure investments. The GCC-wide loan-to-deposit ratio eased slightly to 81.6 percent, indicating that most banks continue to hold more deposits than loans, providing a liquidity cushion. Kamco's analysis also noted that central banks across the GCC largely maintained policy rates during the quarter, offering monetary stability amid global uncertainty. In Kuwait, total credit exceeded 50 billion Kuwaiti dinars for the first time, while Qatar saw its strongest loan growth in over two years, mainly due to lending to public entities and contractors. Looking ahead, rating agencies maintain a stable view of the region's banking sector. Moody's and Fitch Ratings expect profitability to remain solid in 2025, supported by strong capitalization, effective risk management, and continued non-oil economic expansion. The IMF forecasts gross domestic product growth of 3.5 percent across the GCC this year in 2025, with Saudi Arabia, the UAE, Qatar, and Bahrain driving momentum. S&P Global's latest purchasing managers' index data also points to robust private sector activity, with Saudi Arabia at 58.1 in March, the UAE at 54.0, and Qatar at 52.0 — all above the neutral 50 mark. With resilient lending activity, improving asset quality, and evolving income structures, GCC banks continue to show adaptability in the face of global uncertainty. As governments push ahead with diversification agendas and infrastructure investment, the banking sector is likely to remain a key engine of growth across the region.
Al Etihad
25-05-2025
- Business
- Al Etihad
Inflation remains muted in GCC: Kamco Invest
25 May 2025 11:42 REDDY (ABU DHABI)The GCC continues to perform favourably on the inflation front, with price levels staying well below the regional average, according the latest inflation update from the Kamco Invest. 'This trend is expected to persist throughout the remainder of the year, supported by moderating energy prices and expectations of a relatively stable global exchange rates after recent volatility,' the report said. Regional monetary policies and continued state subsidies in essential sectors such as energy and food also underpin the ongoing price stability, the report said. In the UAE, Dubai's Consumer Price Index (CPI) recorded a year-on-year (YoY) rise of 2.3% in April 2025, easing from 2.8% in March. The Housing, Water, Electricity, and Gas group—the most heavily weighted component in the CPI basket—was a key driver, posting a 7.0% increase. In contrast, the Transport group, another significant category, registered a sharp 7.6% decline YoY in April, compared to a 3.3% drop in March, helping moderate overall inflation. Healthcare costs grew by 3.0%, slightly below the previous month's 3.1%. Despite the slight uptick, inflation in the UAE remains within manageable limits. The International Monetary Fund (IMF) projects an average inflation rate of 2.1% for the UAE in 2025, rising modestly from 1.7% in Arabia reported an inflation rate of 2.3% in April 2025, driven mainly by a 6.8% rise in the Housing, Water, Electricity, and Other Fuels group. Apartment rents soared by 11.9% YoY, contributing to the broader housing index increase. Food and beverages prices rose moderately at 2.2%, while vegetables alone saw a notable 9.4% surge. Meanwhile, other categories such as Transport and Clothing & Footwear saw deflationary movements, which partially offset the upward reported an annual inflation rate of 2.3% in April, as measured by its CPI, which reached 136.3 points. The Food & Beverages group led the increase, climbing by 4.6% YoY, followed closely by Services & Miscellaneous Goods, which grew by 4.9%. However, the Transport index declined by 1.1% due to lower vehicle prices and operational costs, while Housing Services remained flat on a monthly basis. Kuwait's overall inflation trajectory remains well-anchored, aided by policy stability and commodity Qatar, inflation remained significantly lower than its Gulf peers, with the CPI rising by just 0.3% YoY in March 2025. The subdued figure was supported by notable declines in key groups such as Housing, Water, Electricity, and Gas, which fell by 5.0%, and Food & Beverages, which dropped by 0.6%. On the upside, the Communication group posted a sharp 12.9% YoY increase. Month-on-month, Qatar's CPI decreased by 0.8%, reinforcing the overall picture of subdued inflationary recorded the lowest inflation among GCC countries, with the annual inflation rate virtually flat at 0.1% in March 2025. CPI stood at 101.3 points, and prices declined in five out of the twelve CPI categories. Housing-related costs fell by 6.7%, while Recreation & Culture and Health dropped by 7.3% and 1.9%, respectively. The IMF projects that Bahrain's inflation will average 1.0% in 2025—the lowest across the reported an annual inflation rate of 0.5% in March 2025, down from 0.9% the previous month. The most significant price increases came from Miscellaneous Goods & Services, which rose by 6.1%, and Health, which increased by 3.2%. However, the Food & Non-Alcoholic Beverages category declined by 0.7%, with vegetables and seafood prices falling sharply. Oman continues to benefit from fiscal prudence and a rise in non-oil exports, which contribute to keeping inflationary pressures in check. Across the board, the GCC's inflation trajectory appears resilient despite global uncertainties. Stable currency pegs to the US dollar and proactive government intervention have played a critical role in anchoring prices.
Zawya
21-05-2025
- Business
- Zawya
Bahrain's budget focuses on economic development
Bahrain's 2025-26 budget strategically balances fiscal discipline with a strong commitment to economic growth driven by its thriving non-oil sectors, according to a new report. In its latest GCC Budget Update analysis, Kuwait-based Kamco Invest notes that the kingdom's forward-looking budget follows a robust 2.6 per cent real GDP growth in 2024, reaching BD15.13 billion, propelled by a significant 3.8pc expansion in non-oil activities. The Finance and National Economy Ministry projects this positive momentum to continue, with real GDP expected to grow by 2.7pc in 2025, underpinned by a healthy 3.4pc growth in non-oil activities. While the budget projects a deficit of BD1.5 billion ($3.9bn) in 2025, with expenditures rising to BD4.4bn and revenues at BD2.9bn, the government has reached an eight-point agreement that includes maintaining VAT rates while adjusting selective taxes on certain items. The 2026 outlook projects a reduced deficit of BD1.1bn, with expenditures at BD4.5bn and revenues at BD3.5bn, including BD1.8bn from non-oil revenues. The budget underscores a strong focus on social welfare and development. It ensures the continuation of cost-of-living allowances for pensioners and allocates an unprecedented BD800 million for housing projects, marking the largest investment in this sector in the country's history, according to the Bahrain News Agency. Furthermore, BD688m are earmarked for healthcare investment. Significant expenditures for 2025 include BD91.7m for General Public Services, BD81.1m for Housing and Community Amenities, and BD70.6m for Economic Affairs and Infrastructure. Education reforms, infrastructure development including new schools and road upgrades, and improvements to sewage systems are also key components, all while the budget outlines measures to reduce the fiscal deficit, fostering financial stability alongside economic expansion and social well-being. Zooming out, the report underlines that GCC governments anticipate a tightening fiscal outlook for 2025, with aggregate budgeted expenditure estimated at $545.3bn, down from $554.9bn last year. Budgeted revenues are projected to decline by 3.1pc to $488.4bn from $504.1bn in 2024, primarily due to oil output cuts by Opec producers within the GCC. The projected aggregate fiscal deficit for the GCC countries is expected to widen to $56.9bn in 2025, compared to $50.8bn in 2024. Most GCC governments have based their revenue forecasts on a crude oil price of around $60 per barrel, though Saudi Arabia, UAE, and Bahrain did not disclose their specific oil price assumptions. The UAE is expected to balance its budget, while other GCC nations anticipate deficits. However, the actual deficit in 2025 could be significantly lower than budgeted due to conservative oil price estimates. Despite the tighter fiscal environment, GCC governments plan expansionary budgets, prioritising investments in healthcare, education, and infrastructure, alongside substantial funding for large-scale construction projects. A key focus remains on realigning and boosting the contribution of non-oil sectors to their economies. Saudi Arabia is set to dominate the region's finances, accounting for approximately 65.5pc of aggregate budgeted revenues and 63.6pc of aggregate expenditure in the GCC for the year. The regional project market remains robust, with the overall GCC project market index for upcoming contracts reaching $1.54 trillion as of April 2025, according to MEED Projects. Saudi Arabia leads this pipeline with $801.2bn (52.1pc), followed by the UAE at $312.3bn and Oman at an estimated $169.9bn. Crude oil prices, a major revenue driver, began the year above $80 per barrel but have since trended downwards, falling below $60/b in April 2025 following new US tariffs on China and other trading partners. While crude oil has averaged around $71 per barrel so far this year, forecasts for the remainder of 2025 suggest a full-year average of about $69.6 per barrel. Both Opec and the IEA have reduced their 2025 oil demand growth forecasts, reflecting escalating trade tensions and a deteriorating global economic outlook. Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
