Latest news with #netprofits
Khaleej Times
17 hours 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.
Zawya
3 days ago
- Business
- Zawya
Egypt: Foodico's profits rise 32.87% YoY in Q1 2025
Arab Finance: Ismailia National Food Industries (Foodico) saw a 32.87% year-on-year (YoY) increase in its net profits after tax during the first quarter (Q1) of 2025, according to the audited financial statement on May 29th. Foodico achieved net profits after tax of EGP 42.433 million in the three-month period ended March 31st this year, compared to EGP 31.936 million in the corresponding period a year earlier. Net sales hit EGP 122.858 million in Q1 2025, up from EGP 78.082 million in Q1 2024. Foodico is an Egypt-based company engaged in the food industry. The company is involved in the production of vegetables, fruits, and agricultural products such as juices and beverages, in addition to manufacturing, freezing, canning, and drying vegetables, fruits, and legumes, among others. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
3 days ago
- Business
- Zawya
Egypt: CI Capital's logs $7mln consolidated profits in Q1 2025
Arab Finance: CI Capital Holding for Financial Investments' (CICH) consolidated net profits attributable to the parent company plunged 59.41% year on year (YoY) in the first quarter (Q1) of 2025 to EGP 381.352 million from EGP 939.463 million, as per a filing. Operating revenues grew to EGP 2.129 billion in the first three months of the year from EGP 1.495 billion in the corresponding quarter a year earlier. At the level of the standalone financial statement, the company recorded net profits after tax of EGP 627.066 million in Q1 2025, rising from EGP 456.227 million in Q1 2024. Meanwhile, standalone operating revenues grew to EGP 14.538 million from EGP 16.821 million. CI Capital is a diversified financial services group, which provides advisory on capital raising as well as mergers and acquisitions, in addition to asset management, securities brokerage, custody, and research through its investment banking platform. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
3 days ago
- Business
- Zawya
Egypt: Misr Duty Free Shops' consolidated profits rise 20.79% YoY in 9 months
Arab Finance: Misr Duty Free Shops posted a 20.79% year-on-year (YoY) increase in consolidated net profits attributable to the parent company during the first nine months of fiscal year (FY) 2024/2025, as per a disclosure on May 29th. The firm generated net profits of EGP 305.124 million in the nine-month period ened March 31st, 2025, compared to EGP 252.621 million in the same period of FY 2023/2024. Meanwhile, total operating revenues surged to EGP 1.017 billion from EGP 900.249 million a FY earlier. In the third quarter of FY 2024/2025, net profits excluding minority shareholders' rights rose by 13.03% YoY to EGP 76.351 million from EGP 67.548 million. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
3 days ago
- Business
- Zawya
Egypt: Amer Group posts 0.27% YoY consolidated profit uptick in Q1 2025
Arab Finance: Amer Group Holding (AMER) reported a 0.27% year-on-year (YoY) increase in consolidated net profits attributable to the parent company during the first quarter (Q1) of 2025, recording EGP 15.015 million, compared to EGP 14.974 million, according to a financial statement on May 29th. Revenues increased to EGP 316.188 million in Q1 2025 from EGP 271.913 million in Q1 2024. As for the standalone statement, the company registered net losses after tax of EGP 5.077 million in the three-month period ended March 31st, up from EGP 2.775 million in the year-ago period. Amer Group is engaged in diversified industry sectors, with its operations being structured into many segments, namely real estate, restaurants, hotels, malls, and retail. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
