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Total net profit for Dubai banking increased by $621.5 million in the second quarter of 2022 to $1.8 billion, up from $1.2 billion in the second quarter of 2021.
Net profits of Dubai and Abu Dhabi-listed companies rose 49.6 percent to $3.7 billion and 50 percent to $7.2 billion in the second quarter of 2022, as oil gains lifted GCC-listed companies’ quarterly profits to a new record.
Profits rose quarter-on-quarter in all industries in the region, except for financials and pharmaceuticals. As oil prices rose to around $100 a barrel, profit growth at energy companies accounted for most of the absolute increase in profits in the region. “While the global slowdown was largely due to rising inflation and central banks’ efforts to rein in price increases, the region showed strong consumer and business sentiment during the quarter,” Kamco Invest said.
The total net profit of GCC-listed companies reached US$77.3 billion in the quarter, compared to US$65.7 billion in the first quarter of 2022, an increase of 17.6% quarter-on-quarter. Compared with the profit of $47.6 billion in the second quarter of 2021, year-over-year growth was even stronger at 62.6%. Compared with the same period in 2021, the energy, banking and materials industries are among the top three in absolute profit growth.
Quarterly net income for the GCC banking sector hit a new high of $10.9 billion in the second quarter of 2022. “Profit growth was mainly driven by a slight decline in provisions further supporting higher bank revenues, while the cost-to-income ratio remained flat. On the other hand, the top line reflects higher interest rates in the quarter, with central banks in the Gulf Cooperation Council raising rates following the U.S. Federal Reserve rate hike. ,” the Kamco report said.
In Dubai, earnings growth in the second quarter was mainly driven by banks, utilities and real estate companies, which accounted for 93.3% of total earnings for the quarter. “It is worth noting that of the 12 sectors on the Dubai Stock Exchange, eight of them posted year-on-year profit growth in the second quarter of 2022, while the remaining four sectors, including insurance and consumer services, saw declines.
Total net profit for Dubai banking increased by $621.5 million in the second quarter of 2022 to $1.8 billion, up from $1.2 billion in the second quarter of 2021.
Net profit growth in Abu Dhabi’s banking sector was in line with other GCC markets. Total industry profits soared to $1.6 billion, up $197.6 million or 14% year over year, compared to $1.4 billion in the second quarter of 2021.
issacjohn@khaleejtimes.com
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