GCC Banks Achieve Record Profits Of $16.2 Billion In Q2 2025

The GCC-listed banks have exhibited a remarkable performance, marking a record-breaking net profit of $16.2 billion in the second quarter of 2025. This represents a 3.7% increase from the previous quarter, continuing the upward trend for the second consecutive term. Year-on-year, the growth rate stands impressively at 9.2%, as reported by Kamco Invest, a non-banking financial institution based in Kuwait.

A significant factor contributing to this success is the comprehensive increase in sector revenues coupled with a reduction in the cost-to-income ratio. Despite a rise in impairments during the quarter, these positive factors have ensured sustained growth.

The financial sector's robust top-line growth mirrors the continuous expansion in lending activities, underpinned by solid economic fundamentals in the GCC region. This is further bolstered by an extensive pipeline of projects that promise continued prosperity.

At the country level, the majority witnessed positive quarter-over-quarter growth in net income, with five out of the six countries showing an upward trend. However, the Bahraini banking sector experienced a decrease, highlighting a mixed performance across the region.

Kuwaiti banks led the pack with the most significant absolute increase in net profits, boasting a growth of $204.6 million or 15.6%. This was primarily due to the reversal of provisions by three of the nine banks listed on the exchange. Following closely were the UAE and Saudi banks, with net profit increases of $191.8 million (3.2%) and $152.3 million (2.6%) respectively, showcasing the collective strength of the banking sector across these nations.

The banking sector's revenues climbed to a new high of $35.6 billion during the quarter, marking a quarterly growth of 3.6%. This surge in revenue was driven by a widespread increase across countries, counteracting an 8.2% revenue decline in Bahraini banks. UAE banks stood out with a revenue growth of 5.3% or $674 million from the first to the second quarter, indicating robust financial health.

Lending activities have also shown resilience, registering a 3.4% increase to reach $2.23 trillion by the end of Q2. This marks the second-largest quarter-over-quarter growth in the past 16 quarters, reflecting the strong momentum in the non-oil sector across key economies in the region. According to Kamco Invest, this is indicative of the consistent growth in non-oil manufacturing, well above the regional growth mark.

Year-on-year growth in net income was universally positive, with Saudi and Bahraini banks recording double-digit profit growth. This was complemented by substantial profit increases in Oman and Kuwait banks, highlighting a robust and growing banking sector across the GCC.