Arab Banks continue to post record
profits year after year despite the stock market corrections and dip
in oil prices. National Bank of Kuwait (NBK), the largest Kuwaiti
Bank and highest-rated bank in the Middle East, posted a record net
profit of US$ 657m for the first nine months of 2006, a 22% increase
on the previous year.
The aggregate Tier 1 capital of the 100 banks from 13 Arab Countries
grew by a staggering 33.4% in 2006 to reach $79.5bn. And while
aggregate assets grew by a modest 7.8% in 2006, aggregate pre-tax
profits showed extraordinary growth.
Saudi Banks account for well over a third of all Arab bank profits
and with assets of $193bn, also account for more than a quarter
(25.2%) of aggregate Arab assets. UAE provides the largest grouping
of 18 banks with a significant share of overall capital and profits.
Looking ahead the prospects for banks in the region continue to grow
as almost all the GCC states have invested in new financial centers,
such as the Dubai International Financial center, Bahrain Financial
Harbour and the Qatar Financial center. These world-class
infrastructure facilities are attracting top global banks and have
raised the banking standards in the region. With new structures
planned for Saudi Arabia and Kuwait, new opportunities for banks in
the region are opening up especially in the investment banking,
project finance and wealth management areas.
