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Kamco Invest’s analysis placed fourth-quarter revenue for listed GCC banks at a record $37.4 billion, marking a 1.7 percent rise from the previous period on the back of lending expansion. The Kuwait-based firm said the advance came despite pressure on net interest margins from lower credit yields and a dip in non-interest income. “GCC-listed banks showed steady growth in revenues during the fourth quarter of 2025, with total bank revenue reaching a new record high level during the quarter,” the report stated. Higher revenues from lenders in Oman, Kuwait, Bahrain and Saudi Arabia drove the overall increase while institutions in the UAE and Qatar recorded declines.
Net profits for the listed banks fell 5.9 percent to $15.6 billion from the preceding quarter’s peak, according to the Kamco Invest report. The decline, seen across nearly all member states except Oman, stemmed primarily from elevated impairments that more than offset top-line gains. Operating expenses also climbed for a second straight quarter, further weighing on bottom-line results. The performance nevertheless reflected resilient demand for credit across most economic sectors and countries in the bloc.
Aggregate gross loans extended by the listed banks expanded 2.7 percent to $2.47 trillion by the end of 2025, Kamco Invest figures show. Net loans rose 2.5 percent to $2.37 trillion over the same period, supported by a strong pipeline of government-backed projects and non-oil activity. The broad-based credit growth aligned with economic diversification efforts that have reduced reliance on hydrocarbon revenues in recent years.
Customer deposits at the listed banks slipped 0.6 percent to $2.78 trillion during the quarter, the first sequential drop in 19 periods, the Kamco Invest assessment found. That retreat, combined with continued loan expansion, pushed the sector’s loan-to-deposit ratio to a fresh high of 85.4 percent from 82.8 percent three months earlier. Liquidity conditions therefore tightened even as capital and provisioning buffers remained solid across the region.
World Bank data shows GCC economies are projected to expand 3.2 percent in 2025 and 4.5 percent in 2026, propelled by non-oil sector gains and public investment programs that have sustained credit demand. These trends underpinned the banking results even as global energy markets fluctuated. The robust project pipeline spanning infrastructure and diversification initiatives continued to channel financing through the financial system.
Fitch Ratings assessed that GCC banking systems face limited immediate credit risks from the US-Israel war with Iran that erupted in late February, citing strong capital positions, liquidity reserves and sovereign backing. S&P Global Ratings projected slower credit growth and moderate pressure on financial performance through 2026, assuming no major escalation, while noting average Tier 1 ratios at 17 percent and nonperforming loans near 2.4 percent as of March. The combination of policy support and conservative underwriting has helped institutions weather the added geopolitical uncertainty.
