The UAE remained in control of the largest Arab banking
sector at the end of 2011, accounting for nearly a third
of the combined bank assets in the Gulf countries,
according to a regional bank study.After dominating
regional banks, Dubai-based Emirates NBD (ENBD)
retreated to the third place in terms of assets, which
stood at around $77.5 billion at the end of 2011, said
the study by Qatar National Bank (QNB).
QNB moved ahead to the first rank
with assets of about $82.9 billion, followed by National
Commercial Bank (NCB) of Saudi Arabia, with nearly $80.3
billion.The government-controlled National Bank of Abu
Dhabi (NBAD) emerged as the fourth largest Gulf bank,
with its assets standing at $69.6 billion.The report
showed the UAE retained its position as having the
largest banking sector, controlling nearly 31 per cent
of the combined assets of the more than 150 banks in the
six-nation Gulf Cooperation Council (GCC).
“The UAE banking sector accounts
for 31 per cent of the GCC total and assets are over 122
per cent of GDP, the second highest ratio after
Bahrain,” QNB said.“The sector has a low concentration
as the three largest banks (ENBD, NBAD and Abu Dhabi
Commercial Bank) account for 43 per cent of total
assets.”
The report showed Saudi Arabia had
the second largest bank asset base at the end of 2011,
accounting for 28 per cent of the GCC’s total bank
assets.It put the ratio at 13 per cent for Bahrain and
Qatar, around 11 per cent for Kuwait and four per cent
for Oman.
It showed total assets of GCC banks
grew by 7.5 per cent in 2007-2011, far exceeding growth
during 2003-2007 due to the huge loan growth brought
about by rapid economic expansion and large capital
investments.During 2011, the sector’s assets grew by
nearly 6.1 per cent to a record high of about $1.46
trillion, nearly 106 per cent of GDP.
“The ratio, which provides a
measure of the importance of the banking sector to the
overall economy, is relatively low for most GCC
countries compared with some major advanced economies,”
QNB said.“Bahrain is an exception, which has skewed the
overall GCC ratio. It has one of the highest ratios of
banking assets to GDP, due to a large presence of
wholesale banks which account for 66 per cent of total
banking sector assets.”
As for individual banks, the report
showed QNB made the highest net profits in the region
last year, with around $2.06bn. It was followed by the
Saudi Al Rajhi Bank group with about $1.97bn. NCB
recorded the third largest earnings of $1.6bn while the
profits stood at $1.15bn for the Saudi American Bank,
$1.09 billion for National Bank of Kuwait and almost the
same income for NBAD and Abu Dhabi-based First Gulf
Bank.
The report showed QNB also had the
largest capital of around $11.5 billion at the end of
2011, followed by ENBD with about $9.5bn, NCB with
nearly $9.1bn and Al Rajhi with $8.8bn. Next to them are
NBK, Riyadh Bank, NBAD, ADCB, Saudi British Bank and
Alinma Bank of Saudi Arabia.ends