Gulf lenders benefit from rising oil prices

Middle Eastern lenders have performed well against their international peers in The Banker’s Top 1000 World Banks ranking for 2022, with economies in the Gulf and Israel in particular benefiting from a recovery in oil prices and rapid vaccine rollouts, respectively. After a mixed performance last year, 21 of the region’s 25 largest lenders have achieved improved positions in this year’s ranking, with each reporting improved pre-tax profits as impairments fell.

Saudi National Bank (SNB) has dislodged Qatar National Bank (QNB) from the top of the ranking, becoming the first Saudi lender to lead the table since 2016. The bank — which sits in third place for the region in terms of assets, behind QNB and First Abu Dhabi Bank (FAB) — has been one of the main beneficiaries of the country’s booming mortgage market, along with the region’s fifth-largest lender Al Rajhi. 

Qatar’s Masraf Al Rayan, which enters this year’s regional Top 25 at number 22, is one of the other main Middle Eastern gainers in this year’s rankings. The lender, which finalised the acquisition of domestic rival Al Khaliji in November, saw its Tier 1 capital base increase by 56.6% to $5.75bn, enough to lift it 93 places in the overall ranking to 259th position.

Outside of the Arab world, lenders in Israel — one of the earliest countries in the region to fully reopen after the coronavirus pandemic — continue to flourish in the regional table. Bank Leumi rose by 15 places to 131st overall and sixth in the region, overtaking Bank Hapoalim to become the country’s largest lender by Tier 1 capital. 

Middle East top 25 banks ($m)

To access the full results, please go to Top 1000 World Banks.