Gulf banks have continued to increase profits, reporting record profit growth in excess of 50% for the first half of 2005.
Early results from banks in Bahrain, Saudi Arabia and Kuwait reflect across-the-board expansion, including strong fee income growth from major financings in the region.
Bahrain’s Gulf International Bank’s pre-tax profits rose by 73.4% to $115.8m on the back of trading and investment banking growth. Net profits at Saudi Arabia’s Arab National Bank rose 55% to $283m, boosting return on equity to 35%. Net profits at National Bank of Kuwait, the highest-rated bank in the Middle East, were up by a record 51% to $337m.
