S&P: GCC Banks Poised for Strong 2024 Performance Amid Lending Growth and Stable Margins

UAE, 5 September, 2024 : S&P Global Ratings has forecast that GCC banks will continue their strong performance through 2024, driven by rising lending volumes, higher fee income, stable margins, and strong cost efficiency.

The report highlighted a 10.4% annualised lending growth for the top 45 GCC banks in the first half of 2024, boosted by non-oil sectors in Saudi Arabia and the UAE, compared to 6.7% in 2023.

Stable profit margins of 2.7% and an increase in return on assets to 1.74% contributed to the banks' robust profitability. S&P expects a 150 bps rate cut by the Federal Reserve by the end of 2025.

Source : www.wam.ae