Money and business
A strong performance for Saudi banks in 2025 with the growth of Gulf economies
Gulf banks have maintained a strong performance during the first half of the year, with a improvement in profitability, quality of assets and capital, while this sector continues, according to an analysis of the Foundation "Ernest and Young"Enjoying distinctive levels of flexibility even with the start of the impact of monetary policy relief and the tightening of liquidity on the margins of profit. Net interest margins decreased to 2.6%, compared to 2.8% in the first half of 2024, which reflects the impact of reducing interest rates throughout the region, with further emphasizing after reducing interest rates in September 2025.
Gulf economy is in a good position expected to be analyzed "Ernest and Young"The economy of the Gulf Cooperation Council states will grow by 3% in 2025, and this growth increases to 4.1% in 2026, supported by investments in infrastructure, economic diversification initiatives and the dynamics of the private sector. In 2026, while non -oil sectors will lead growth against the background of continuous reforms and foreign investment flow. These conditions provide a supportive environment for banking activity throughout the region." target ="_Blank"> Ownerous rights in the banking sector in the countries of the Gulf Cooperation Council 13.2%, which reflects the high income without interest and cost efficiency. The cost to income has improved to 32.0%, in a strong indication of the continued benefits achieved by improving operations and digital transformation. Al -Rasmala maintained its position as one of the basic strengths, as the average capital of the first category reached 17.5%, and the percentage of capital adequacy was 18.9%, which strengthened the sector’s ability to absorb external shocks. "We touch in the first half of 2025 flexibility in The banking sector in the countries of the Gulf Cooperation Council, as banks have a good situation that enables them to face pressure in the short term and seize long -term opportunities, thanks to their strong reserves of capital, their most powerful public budgets, and their improved efficiency. "With efforts to adopt digital transformation, sustainability and organizational preparation, the sector will continue to play a pivotal role in supporting the economic transformation in the region". - For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Twitter
Follow Us
