GCC banking assets rise to $2.2 trln in Q2 2019: report

Total assets of the GCC banking sector grew 6.4 percent year-on-year to $2.23 trillion in the second quarter of 2019, according to a report by Kamco Investment Company.

The growth came primarily on the back of conventional banks that grew assets at 2.3 percent quarter-on-quarter (QoQ), while Islamic banks increased their balance sheet by 1.3 percent.

However, the growth in earning assets was slightly lower at 1.3 percent to reach $1.86 trillion indicating a relatively higher growth in non-earning assets. The QoQ growth in net loans stood at 0.9 percent in Q2 2019, reaching $1.36 trillion after increasing at the more than double the pace during the previous quarter.

On the other hand, the growth in customer deposits was recorded at 2.3 percent QoQ, the highest growth over the past eight quarters.

As a result, the loan-to-deposit ratio reached 80.4 percent, one of the lowest over the last nine quarters and continued to remain well below international standards, the report said.