GCC banks exceed pre-pandemic profit levels, maintain strong Stability

The commercial banking sector across the Gulf Cooperation Council (GCC) countries posted robust growth in 2024, with total assets, deposits, and loan balances all recording near double-digit increases, according to the latest figures released by the GCC Statistical Centre (GCC-Stat).

By the end of 2024, total assets of GCC commercial banks rose by 10 percent, reaching approximately $3.5 trillion, compared to levels recorded at the close of 2023.

Deposits across the region’s banking system also expanded strongly, climbing by 9.6 percent year-on-year to nearly $2.1 trillion. 

GCC-Stat noted that all member states recorded increases in deposits during the year, underlining the resilience of household and corporate savings as well as ongoing government liquidity injections into the system.

The total loan balance provided by commercial banks in the GCC reached $2.1 trillion, representing a 9.9 percent increase from 2023. Notably, loans to the private sector accounted for 80.7 percent of total lending, highlighting the growing role of GCC banks in financing non-oil sectors and supporting economic diversification initiatives across the region.

The ratio of non-performing loans (NPLs) to total loans declined in most GCC countries between 2020 and 2024, though the level varied from market to market. Meanwhile, loan-to-deposit ratios differed widely across the bloc, ranging from 125 percent to 66 percent, reflecting different national banking structures and lending dynamics.

Strong Capital and Profitability

GCC commercial banks maintained capital adequacy ratios well above Basel III regulatory requirements, ranging from 32 percent to 17.8 percent in 2024. Basel III stipulates a minimum ratio of 8 percent, underscoring the financial strength and stability of the region’s lenders.

Net profits across GCC banks continued to rise steadily, surpassing pre-pandemic levels and reflecting improved asset quality, stronger lending activity, and higher interest income in a context of tighter global monetary policy.

Analysts note that the GCC banking sector is benefitting from strong regional liquidity, robust energy revenues, and ongoing structural reforms aimed at diversifying economies. 

With balance sheets expanding, non-performing loans declining, and profitability improving, GCC banks are well-positioned to maintain growth momentum in 2025, though risks remain tied to global interest rate trends and geopolitical uncertainties.