GCC Bank Profits Surge to $11 Billion

The Gulf banking sector records strong profit growth to return to pre-pandemic levels (Reuters)
The Gulf banking sector records strong profit growth to return to pre-pandemic levels (Reuters)
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GCC Bank Profits Surge to $11 Billion

The Gulf banking sector records strong profit growth to return to pre-pandemic levels (Reuters)
The Gulf banking sector records strong profit growth to return to pre-pandemic levels (Reuters)

The first quarter of 2022 proved to be the best quarters for banks in the Gulf Cooperation Council as they raked in $10.9 billion in aggregate profits, a Kamco Invest report showed.

This is one of the highest quarterly levels on record.

Five out of six Gulf countries saw their banks post double-digit profit growth in the first quarter of 2022, while Kuwaiti banks’ profits grew slightly lower at 0.9 percent.

Kamco Invest said improved results were backed by solid economic growth and recovery in post-pandemic demand amid rising oil prices.

Moreover, the loose fiscal policies in the region and globally that were implemented last year with an aim to boost investments supported investment in businesses, the report added.

The bottom line was supported by marginal growth in net interest income and flattish non-interest income.

According to the report, banks in the region recorded a drop of 39.6 percent in cost-to-income ratio compared to the previous quarter, led by a steep drop in operating expenses.

The increase in profit was also supported by a steep q-o-q decline in loan loss provisions booked by banks in the region. Total provisions dropped by a quarter to $2.9 billion during Q1-2022 as compared to $3.8 billion in Q4-2021.



Riyadh and Tokyo to Launch Coordination Framework to Boost Cooperation

Saudi Ambassador to Japan Dr. Ghazi Binzagr. (Asharq Al-Awsat)
Saudi Ambassador to Japan Dr. Ghazi Binzagr. (Asharq Al-Awsat)
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Riyadh and Tokyo to Launch Coordination Framework to Boost Cooperation

Saudi Ambassador to Japan Dr. Ghazi Binzagr. (Asharq Al-Awsat)
Saudi Ambassador to Japan Dr. Ghazi Binzagr. (Asharq Al-Awsat)

Saudi Arabia and Japan are close to unveiling a higher partnership council that will be headed by the countries’ leaderships in line with efforts to build a partnership that bolsters the technical transformation and joint research in clean energy, communications and other areas, revealed Saudi Ambassador to Japan Dr. Ghazi Binzagr.

He told Asharq Al-Awsat that the two countries will soon open a new chapter in their sophisticated strategic partnership.

The new council will be chaired by Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and Japanese Prime Minister Shigeru Ishiba to push forward the Saudi-Japan Vision 2030, he added.

The council will elevate cooperation between the countries and pave the way for broader dialogue and consultations in various fields to bolster political, defense, economic, cultural and sports cooperation, he explained.

The two parties will work on critical technological partnerships that will focus on assessing and developing technologies to benefit from them, Binzagr said. They will also focus on the economy these technologies can create and in turn, the new jobs they will generate.

These jobs can be inside Saudi Arabia or abroad and provide employers with the opportunity to develop the sectors they are specialized in, he added.

Binzagr said Saudi Arabia and Japan will mark 70s years of relations in 2025, coinciding with the launch of Expo 2025 in Osaka in which the Kingdom will have a major presence.

Relations have been based on energy security and trade exchange with Japan’s need for oil. Now, according to Saudi Vision 2030, they can be based on renewable energy and the post-oil phase, remarked the ambassador.

Several opportunities are available in both countries in the cultural, sports and technical fields, he noted.

Both sides agree that improving clean energy and a sustainable environment cannot take place at the expense of a strong economy or quality of life, but through partnership between their countries to influence the global economy, he explained.

"For the next phase, we are keen on consolidating the concept of sustainable partnerships between the two countries in various fields so that this partnership can last for generations,” Binzagr stressed.

“I believe these old partnerships will last for decades and centuries to come,” he remarked.

Moreover, he noted that the oil sector was the cornerstone of the partnership and it will now shift to petrochemicals and the development of the petrochemical industry.