The GCC banking sector's bottomline performance remained strong in Q1-2024, as reported by the GCC Banking Sector Report - Q1-2024 released by kamco Invest. The sector saw a healthy q-o-q growth of 11.8% and a Y-o-Y growth of 10.5%, reaching $14.4 billion. UAE-listed banks recorded the largest q-o-q growth at 5.6%, with total customer deposits reaching USD 803.2 Bn, the highest in the GCC.

UAE maintained its lead in Net Interest Margin (NIMs) at 3.49% in Q1-2024, followed by Saudi Arabian, Qatari, and Kuwaiti banks at 3.18%, 3.06%, and 2.87% NIMs, respectively. At the country level, UAE-listed banks secured the highest return on equity (RoE) at 16.9% in Q1-2024, with Saudi Arabian and Qatari banks close behind at 12.8% and 12.7% RoE, respectively. The most significant Y-o-Y growth in RoE was also observed in UAE-listed banks at 280 bps, driven by increased profits and relatively smaller growth in total shareholders' equity.