Things have been on the up for the GCC’s banks, which collectively recorded a better year in 2017 despite slowing economic growth in the region as a whole.

Banking activity was supported by a higher oil price and continued infrastructure investment as Gulf states diversify their economies in various ways. Commercial activity in the region expanded in 2017 and consumer confidence grew, albeit slightly. As a result, our list of the region’s 50 leading banks – ranking institutions in Bahrain, Kuwait, Oman, Saudi Arabia and the UAE – recorded higher net profit in 2017.

The second half of 2017 was more challenging, but economic growth in the region is expected to improve slightly in 2018. This, along with diversification efforts, should provide a boost to the banking sector this year, meaning the forecast is for a marginal increase in returns.

The UAE has seen among the biggest changes in the regional banking sector over the last year following the merger of National Bank of Abu Dhabi and First Gulf Bank.

The merger was significant as it creates an institution that can compete regionally and internationally. The bank is looking to drive growth in core home market sectors and focusing on serving UAE corporates with international ambitions as well as international companies operating in the UAE.

It also helped FAB move to the top of the assets table, with assets rising by 59 per cent to $182bn. As a consequence, other banks in the top 10 declined in ranking.

Elsewhere the country saw bank loans increase by Dhs6.7bn ($1.82bn) and 0.4 per cent YoY to Dhs1.58 trillion ($430bn in 2017. Bank deposits increased by Dhs64.4bn ($17.5bn) and 4.1 per cent in 2017.

The UAE overtook Saudi Arabia to become the largest domestic banking sector in the GCC for the first time last year.

The emirates held 31.4 per cent of the mark compared to Saudi’s 29 per cent.

TOP 10 BANKS IN THE UAE
(Based on total assets of listed banks at the end of 2017)

1. First Abu Dhabi Bank

Assets in 2017 ($000): 182,131,308
Assets in 2016 ($000): 114,542,200
Growth (2016-2017): 59.01
2017 net profit ($000): 2,981,150
Return on assets (ROA) in 2017: 2.60

2. Emirates NBD

Assets in 2017 ($000): 128,062,152
Assets in 2016 ($000): 121,972,233
Growth (2016-2017): 4.99
2017 net profit ($000): 2,272,201
Return on assets (ROA) in 2017: 1.86

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