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| GCC banks' net down 8.5% to $14.4 bn in '09 |
| Press Trust of India / Dubai Mar 16, 2010, 11:56 IST |
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Banks in the Gulf Cooperation Council (GCC) region saw their collective net profit dip by 8.56 per cent to $14.40 billion in 2009, says a report.
However, the five biggest banks in the Gulf in terms of their market value, reported increase in their net profit in 2009 despite the economic difficulties faced by the financial sectors in the Gulf and world, the report by Global Investment House on GCC banking sector said.
This confirms their strength and ability to overcome challenges and crisis, it added.
"The GCC governments are still offering direct and indirect support, which reduced the impact of the crisis," the report said.
Among the countries, Kuwait reported increase in net profit at 70.22 per cent in 2009 while Bahrain banking sector reported the biggest losses in net profit with a decline of 35.23 per cent last year.
The Qatar government's role was very obvious when it interfered by buying portfolios of listed shares and real estate in banks at a value between 30 billion Qatari riyals and 50 billion Qatari riyals, it said.
At the same time, Abu Dhabi government played a crucial role and injected $4.36 billion in five banks to strengthen their position in the middle of the crisis, the report added.
Elaborating the performance of the five biggest banks in the GCC, the Global report reveals that Al Rajhi Bank, the biggest bank in the Gulf, saw an increase of 3.7 per cent in net profit to $1.8 billion in 2009 from $1.74 billion a year ago.
The reason behind increase is attributed to development of the investment banking business and diversifying its sources of income, the report said noting that the bank's profits are the highest among all lenders in the region.
Qatar National Bank recorded a net income of $1.15 billion in 2009, up by 15.04 per cent from 2008 level of $1.0 billion.
Riyad Bank reported an increase in net profit of 14.8 per cent at $807.65 million from $703.43 million in 2008.
According to the report, net Profit of National Bank of Kuwait (NBK) increased by 3.87 per cent in 2009 to $920.23 million in 2009.
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