Top 1000 World Banks - QNB returns to the top of Middle East table

Qatar National Bank has regained the top spot in the Top 1000 World Banks Middle East regional table for 2019, overtaking United Arab Emirates lender First Abu Dhabi Bank to regain the position it first held in the 2017 rankings. Saudi and Emirati lenders continue to jockey for positions in the top five for the region, with all but one position changing hands in 2019.

QNB returns to pole position with Tier 1 capital of $22.5bn for the 2018 review period, a 12% increase over its 2017 figures, bolstered by a $2.8bn additional Tier 1 perpetual capital note. The bank reported some of its best ever annual results during the review period, despite the ongoing political and economic rift between Qatar and some of its regional neighbours.

First Abu Dhabi Bank’s fall to second position in the Middle Eastern rankings comes as its Tier 1 capital slipped 5% to $19.5bn in 2018. Saudi Arabia’s National Commercial Bank (NCB) retains third place, as its Tier 1 capital rose 4.3% to $17.8bn, with Emirates NBD rising to fourth place (from fifth in the 2018 rankings) with a Tier 1 capital position of $15.1bn.

While NCB holds its position in the 2019 table, other major Saudi banks have seen their rankings impacted by multi-billion-dollar settlements in late 2018 with the country’s tax authority over the payment of religious taxes. Al Rajhi Bank, the world’s largest Islamic bank, was particularly affected, with its Tier 1 capital slipping 13% to $12.9bn, pushing it into fifth position (from fourth position in the 2018 survey) in the region.

Al Rajhi leads the region’s top five banks by return on capital (ROC), however, with 21.2% for the review period. Emirates NBD holds second spot with 18.1%, followed by Qatar’s Masraf Al Rayan and the UAE’s Dubai Islamic Bank with 17.9% and 17.5%, respectively. Lebanon’s Blom Bank, which led the regional rankings in 2018, falls to fifth position, with its ROC falling from 22.7% to 17.2%.

Gulf lenders dominate the Middle East’s highest movers’ table for 2019, with Blom Bank and fellow Lebanese lender Credit Libanais (in eighth and 10th place, respectively) the only banks from outside the Arabian peninsula. Saudi Arabia’s Bank Al Jazira leads the table, with Tier 1 capital growth of 32.5%.

Top 25: Middle East ($M)

Highest Movers: Middle East

Top Five ROC: Middle East