THE BUSINESS GCC Top 50 Banks
Bottomed out? After a very difficult 2008 and equally painful 2009, it would seem the worst of the banking slump has passed and 2010 should offer a slight recovery, DARREN STUBING reports.
2009
proved to be another difficult year for the Gulf Cooperation Council (GCC) banking sector with the aftermath from the global financial crisis still heavily impacting income lines and balance sheets. Banking profitability in the region was once again weaker, mainly due to much higher provisioning charges connected to loan assets as well as securities, investments and real estate assets. Loan credit defaults continued to rise due to both corporate and retail exposures whereas asset values for some banks
had to continue to be written down, particularly those linked to the property sector. The latter was again under pressure in 2009, as demand remained extremely weak and many prominent developments remained on hold. In a circular connection, companies could not continue their development activities as many were not able to renew existing facilities or obtain new credit as banks reined in their exposures. Generally, the economies of the GCC states remained robust, with the price of oil improving from the sharp falls in
the previous year, and the oil price was at a high average level for 2009. This helped to support government and business positions during the year. For the second consecutive year, net profit for the top 50 GCC banks fell in 2009. The Gulf’s largest banks recorded a fall of 12.5 per cent last year, although the fall was lower than the significant decrease of 26 per cent in aggregated net profit in 2008. Once again, very large losses were notable at a handful of banks, including Gulf Finance House and Ithmaar Bank, as well sharp falls May 2010 gulfbusiness.com
37
THE BUSINESS GCC Top 50 Banks
at a number of banks, including Commercial Bank of Kuwait, Bank Al Jazira, Saudi Hollandi Bank and Abu Dhabi Islamic Bank. Kuwait’s Gulf Bank recorded another loss in 2009 but was much lower than the huge loss seen in 2008, which was due to derivative positions. Overall, well over one-half of the banks saw a fall in net profit in 2009, and hence any recovery remained on hold. Despite the much weaker profitability and earnings, generally the financial positions of most banks strengthened as asset growth was moderate with management aiming to either improve and/or maintain asset quality through restricting balance sheet growth and helping liquidity. In addition, increasing capital adequacy was seen through raising shareholders’ equity. The Gulf’s top 50 banks’ consoli-
in 2009, and now ranks 35th in terms of capital and 42nd in assets.The other new entrant in 2009 was the Albaraka banking group, which has a diverse banking asset base across the region and beyond. It remained profitable in 2009. Despite challenges, many UAE banks also saw good rates of growth in assets in 2009. These banks included National Bank of Abu Dhabi, First Gulf Bank, Union National Bank, RAK bank, and Abu Dhabi Islamic Bank. For the Kingdom of Saudi Arabia, the performance in terms of asset growth was more mixed, with good growth seen at National Commercial Bank, the second largest bank in the GCC in terms of both assets and shareholders equity. However, a number of Saudi banks saw a fall in assets, in part reflecting cautious credit management,
Overall, UAE banks have the most representatives amongst the top 50 list with 13 names in the total assets table. dated assets rose by just 4 per cent in 2009 to fractionally over $1.05 trillion. The growth compares to 15 per cent in 2008 and 35 per cent in 2007. Total equity for the GCC 50 banks grew by a higher 13 per cent in 2009, to $138 billion. The percentage increase in equity in 2009 was higher than the 11 per cent seen in 2008. Overall, capital adequacy improved for the sector in 2009. Two high profile casualties of the financial crisis, Bahrain-based The International Banking Corporation and Awal Bank, the two institutions linked to the Saudi-based Saad Group, disappeared from the GCC 50 list in 2009. Both were caught in the shift and tightening in liquidity and funding markets but the overall collapse of the banks remains under investigation. By country, Qatari banks enjoyed the best growth in terms of assets in 2009, reflecting the robust performance of the domestic economy. Noted increases in assets were particularly led by the newer Qatari banks, including Al Rayan and Al Khalij Commercial Bank. The latter was a new entrant in the GCC 50 banks
38
gulfbusiness.com May 2010
particularly in the light of some high profile corporate collapses in the Kingdom. NCB was the stand out in terms of net profit improvement. On the back of the fall in net profit in 2009, profitability for the GCC 50 banks was lower once again. The return on as-
GCC 50 Banks – Return on Equity (%) 25
20
15
10
5
0
2005
2006
2007
2008
2009
sets for the top 50 GCC banks in 2009 was 1.51 per cent against 1.53 per cent in 2008 and a higher 2.42 per cent in 2007. However, including the large loss at Gulf Finance House (see chart), the return on assets in 2009 was a lower 13.7 per cent for the overall group. Return on equity fell more sharply in 2009, in part reflecting the increases in equity at many banks during the year. The return on equity for the GCC 50 banks was a low 11.1 per cent in 2009, down from a level of 13.7 per cent, and 19.4 per cent in 2007. Previously, the GCC financial institutions were amongst the most profitable banks globally, benefiting from a rampant regional economy and sustained high oil price. However, going forward, banks will need to generate a broader base of core banking income, and, for many, rely less on trading income. For the first time, the UAE’s Emirates NBD emerged as the largest bank in terms of both assets and equity in the GCC in 2009. Following a 24 per cent rise in equity, Emirates NBD rose to rank first for capital from a previous position of third. Its profitability performance was still more than respectable given the operating environment, but a 9 per cent decline in net profit saw it fall to sixth place from third in terms of net profit. Once again, Saudi Arabia’s Al Rajhi Banking and Investment Corporation was by far the largest bank in the GCC in terms of net profit, rising marginally by 4 per cent in the year to $1.8 billion. Its return on assets remained one of the highest at 4.11 per cent. In terms of this yardstick, the most profitable bank amongst the GCC 50 is Qatar’s Al Rayan Bank at a very high 5.25 per cent, followed closely by UAE’s RAK bank at 5.21 per cent. Other very profitable banks included Qatar Islamic Bank at 3.94 per cent return on assets. Although a good turn around was seen at Bahrain-headquartered Arab Banking Corporation, which achieved net profit of $154 million in 2009 following a loss of $836 million in 2008, a number of other Bahrain-based wholesale banks again experienced difficult years. Gulf Finance House recorded a massive loss
THE BUSINESS GCC Top 50 Banks
Uncertainty around non-performing loans
M
uch of the weakness in the region’s profit performance in 2009 was unsurprisingly connected to sharply higher non-performing loans (NPLs), and asset value writedowns, and connected loan loss provision charges. The deteriorating loan asset quality portfolios were seen throughout the region but there were variations. Banks saw bad debt increases following a number of large financial collapses, including those of Awal Bank and the International Banking Corporation and, in turn, related exposures to the Saad and Al Gosaibi groups of Saudi Arabia. GCC bank exposure to the troubled groups was well in excess of $10 billion, including $5 billion to Saudi banks and $3 billion to UAE banks. Dubai World’s debt issues and restructuring added to the
of $728 million, connected to the need to make hefty provisions relating to assets where values have fallen sharply, including those linked to real estate. Ithmaar bank saw a loss of $233 million in 2009, reflecting provision impairments and also a large fall in income from investment properties. The investment bank Arcapita also recorded a loss of $191 million as at end December 2009, reflecting difficult trading conditions, whilst Gulf International Bank saw its third consecutive year loss. Although much lower than the loss of $396 million seen in 2008, GIB’s loss of $153 million was still hefty, and was due to loan provision charges and weaker net interest income. The latter reflects the bank’s strategy of de-risking the balance sheet and reducing the loan portfolio. Despite the losses, GIB maintains a high capital adequacy ratio and good liquidity. The dominance of the largest 20 banks remained stable in 2009, with the largest 20 Gulf banks comprising 75 per cent of the combined asset base. By profit however, the largest 20 represented 96 per cent of total net profit but this was in part influenced by the fact that nine banks in the GCC 50 recorded losses in 2009. The aggregated return on
problems, as did the very sharp downturn in the Dubai property market in general, causing higher non-performing loans for banks in the region. The significant downturn in the real estate sector in the GCC also raised loan default levels for banks. This included exposures to both real estate companies and developers but also to individuals. Retail impairments for banks in 2009 also increased. The impact of rising bad loans has been widespread but some have suffered more than others. The Kuwaiti banking sector experienced a very sharp rise in NPLs in 2009, reflecting chiefly commercial and corporate loan defaults linked to investment companies and real estate exposure. Oman and Bahrainibased banks also saw higher NPLs and provisioning. This was the case in Qatar,
but here the government’s decision to acquire real estate financing exposure reduced the overall rise. Overall, for the GCC sector, NPLs doubled to around 6 per cent of gross loans in 2009 but there is regional variation, with lower levels seen for example in Qatar and higher levels in Kuwait. The 6 per cent level is likely to rise in the first half of 2010 but the flow of new NPLs is expected to slow. The strictness and uniformity of impairment and non-performing classification across banks is an issue and some may still need to classify certain exposures. On the positive side, most GCC banks have made a good level of provisions against bad loans and the coverage level is considered solid. However, as seen, the provisioning hit bank profitability.
assets for the top 20 banks is higher, at 1.78 per cent, than that of the 50 banks, indicating a broader base of banking operations and generally less reliance on wholesale banking activities. Overall, UAE banks have the most representatives amongst the top 50 list with 13 names in the total assets table. This was also the case in shareholders’ equity and net profit. Through the support of the government, a number of banks, including First Gulf Bank and National Bank of Abu Dhabi, saw strong rises in equity.
For the GCC banking system, 2009 was again a very difficult year and the period over the past two years has been extremely challenging. There have been high profile casualties and a number of other banks have recorded large losses through problematic exposures, both on and off-balance sheets, and some are still going through restructuring in terms of operations and strategy. Despite the noted fall in profitability, most banks have been able to either maintain or improve their financial
For the first time, the UAE’s Emirates NBD emerged as the largest bank in terms of both assets and equity in the GCC in 2009. Reflecting still difficult trading conditions, problematic exposures to companies and investment houses, as well as continued weakness in the property sector, Kuwaiti banks had another weak year with all Kuwaiti banks in the GCC 50 seeing weaker net profit in 2009, and many by hefty percentages. That said, the flagship Kuwaiti bank, National Bank of Kuwait, saw net profit down by only 1 per cent.
profiles through capital injections and de-risking the balance sheet. Liquidity is still tight but has nonetheless recorded some improvement more recently. 2010 certainly will not be an easy year for the GCC banking sector and profitability is a long way off the halcyon period of a few years back, but the worst of the downturn may have passed and this year should be one of recovery. gb@motivate.ae May 2010 gulfbusiness.com
39
THE BUSINESS GCC Top 50 Banks Top 50 GCC BANKS 2009 ranked by Total Assets ($000s) Rank 2009
2008 Rank
BANK NAME
Country
Year Ended
Current Assets 09
Previous Assets 08
1
1
Emirates NBD
UAE
12/09
76,723,837
76,991,815
2
2
National Commercial Bank
S.Arabia
12/09
68,810,650
59,147,193
3
4
National Bank of Abu Dhabi
UAE
12/09
53,636,109
44,888,220
4
3
SAMBA
S.Arabia
12/09
49,594,533
5
8
Qatar National Bank
Qatar
12/09
6
7
Riyad Bank
S.Arabia
7
5
Al Rajhi Banking and Investment Corporation
8
6
9
9
Growth Y-O-Y (%)
Net Profit
09 ROA (%)
-0.35
910,772
1.18
16.34
1,080,012
1.83
19.49
822,871
1.83
47,704,317
3.96
1,217,244
2.55
49,198,605
41,739,527
17.87
1,149,099
2.75
12/09
47,156,751
42,574,007
10.76
810,138
1.90
S.Arabia
12/09
45,641,110
43,981,280
3.77
1,809,073
4.11
National Bank of Kuwait
Kuwait
12/09
44,715,940
43,389,462
3.06
923,735
2.13
Abu Dhabi Commercial Bank
UAE
12/09
43,618,000
40,220,042
8.45
-139,600
-0.35
10
10
Kuwait Finance House
Kuwait
12/09
39,354,110
37,390,574
5.25
250,331
0.67
11
14
First Gulf Bank
UAE
12/09
34,160,800
29,273,539
16.70
901,800
3.08
12
11
Saudi British Bank
S.Arabia
12/09
33,907,547
35,109,518
-3.42
543,288
1.55
13
12
Banque Saudi Fransi
S.Arabia
12/09
32,232,587
33,563,936
-3.97
659,717
1.97
14
13
Arab National Bank
S.Arabia
12/09
29,485,743
32,348,571
-8.85
633,574
1.96
15
15
Arab Banking Corporation
Bahrain
12/09
25,965,000
28,486,000
-8.85
154,000
0.54
16
16
Mashreq Bank
UAE
12/09
25,761,487
25,386,202
1.48
289,828
1.14
17
18
Ahli United Bank
Bahrain
12/09
23,573,983
23,582,727
-0.04
226,086
0.96
18
19
Dubai Islamic Bank
UAE
12/09
22,971,191
23,063,711
-0.40
330,322
1.43
19
20
Union National Bank
UAE
12/09
20,616,831
17,758,038
16.10
315,155
1.77
20
27
Abu Dhabi Islamic Bank
UAE
12/09
17,461,581
13,960,922
25.07
21,260
0.15
21
21
Gulf Bank
Kuwait
12/09
16,434,821
17,542,553
-6.31
-97,256
-0.55
22
17
Gulf International Bank
Bahrain
12/09
16,207,700
25,033,500
-35.26
-152,600
-0.61
23
23
Saudi Hollandi Bank
S.Arabia
12/09
15,801,780
16,382,982
-3.55
23,774
0.15
24
22
Commercial Bank of Qatar
Qatar
12/09
15,724,927
16,836,515
-6.60
417,996
2.48
25
24
Bank Muscat
Oman
12/09
15,196,716
15,657,756
-2.94
191,476
1.22
26
28
Burgan Bank
Kuwait
12/09
14,183,212
13,877,578
2.20
71,381
0.51
27
26
Saudi Investment Bank
S.Arabia
12/09
13,406,050
14,292,364
-6.20
144,029
1.01
28
-
Albaraka
Bahrain
12/09
13,166,277
10,920,288
20.57
167,386
1.53
29
30
Doha Bank
Qatar
12/09
12,620,027
10,712,160
17.81
267,106
2.49
30
25
Commercial Bank of Kuwait
Kuwait
12/09
12,455,559
15,271,812
-18.44
527
0.00
31
32
Qatar Islamic Bank
Qatar
12/09
10,774,403
9,212,622
16.95
362,718
3.94
32
29
Al-Ahli Bank of Kuwait
Kuwait
12/09
10,275,378
10,769,362
-4.59
135,715
1.26
33
31
Commercial Bank of Dubai
UAE
12/09
10,022,630
9,748,181
2.82
218,895
2.25
34
35
Bank Al Jazira
S.Arabia
12/09
8,013,634
7,338,587
9.20
7,352
0.10
35
33
Bank of Kuwait and the Middle East
Kuwait
12/09
7,833,016
7,943,262
-1.39
49,541
0.62
36
42
Al Rayan
Qatar
12/09
6,618,327
4,605,625
43.70
241,607
5.25
37
36
Bank of Bahrain and Kuwait
Bahrain
12/09
6,061,853
5,744,788
5.52
93,145
1.62
38
37
39 40
38 39
National Bank of Bahrain Ithmaar Bank
Bahrain Bahrain
12/09 12/09
5,632,320 5,213,861
5,409,840 5,380,426
4.11 -3.10
113,890 -233,369
2.11 -4.34
Ahli Bank of Qatar
Qatar
12/09
5,061,608
4,888,568
3.54
82,446
1.69
41
45
Bank of Sharjah
UAE
12/09
4,921,486
4,312,985
14.11
129,563
3.00
42
-
Al Khalij Commercial Bank
Qatar
12/09
4,807,709
3,279,702
46.59
45,897
1.40
43
46
Dubai Bank
UAE
12/09
4,739,828
4,296,257
10.32
-79,194
-1.84
44
40
National Bank of Oman
Oman
12/09
4,670,700
4,690,673
-0.43
54,800
1.17
45
49
RAK Bank
UAE
12/09
4,664,201
3,795,443
22.89
197,861
5.21
46
44
Al Bilad
S.Arabia
12/09
4,654,528
4,397,750
5.84
-66,402
-1.51
47
47
Sharjah Islamic Bank
UAE
12/09
4,352,738
4,225,621
3.01
70,881
1.68
48
43
Arcapita
Bahrain
12/09
4,009,970
4,456,525
-10.02
-190,700
-4.28
49
48
Kuwait International Bank
Kuwait
12/09
3,950,584
3,840,426
2.87
-28,529
-0.74
50
-
Bank Dhofar
Oman
12/09
3,862,133
3,437,961
12.34
65,956
1.92
Y-O-Y: year-on year; ROA: return on assets; NR: not ranked; *: Investcorp and Arcapita six months results to end December 2009.
40
gulfbusiness.com May 2010
THE BUSINESS GCC Top 50 Banks Top 50 GCC BANKS 2009 ranked by Total Capital ($000s) Rank 2008 BANK NAME Country Year Current 2009Takaful Rank Endedwritten Assets 09 contributions as % of total premiums 1 3 Emirates NBD UAE 12/09 8,711,347 2
1
National Commercial Bank
S.Arabia
12/09
7,834,225
Previous Assets 08
Growth Y-O-Y (%)
Net Profit
09 ROA (%)
7,023,233
24.04
910,772
10.46
7,342,800
6.69
1,080,012
13.79
3
2
Al Rajhi Banking and Investment Corporation
S.Arabia
12/09
7,683,295
7,208,480
6.59
1,809,073
23.55
4
4
Riyad Bank
S.Arabia
12/09
7,548,171
6,850,787
10.18
810,138
10.73
5
5
National Bank of Kuwait
Kuwait
12/09
6,369,870
5,684,240
12.06
923,735
14.50
6
9
First Gulf Bank
UAE
12/09
6,235,400
4,524,806
37.80
901,800
14.46
7
7
8
11
SAMBA
S.Arabia
12/09
6,015,357
5,349,831
12.44
1,217,244
20.24
National Bank of Abu Dhabi
UAE
12/09
5,569,637
3,913,906
42.30
822,871
14.77 20.97
9
8
Qatar National Bank
Qatar
12/09
5,479,240
4,571,059
19.87
1,149,099
10
6
Kuwait Finance House
Kuwait
12/09
5,458,190
5,655,422
-3.49
250,331
4.59
11
10
Abu Dhabi Commercial Bank
UAE
12/09
5,197,400
4,333,013
19.95
-139,600
-2.69
12
12
Banque Saudi Fransi
S.Arabia
12/09
4,210,918
3,751,770
12.24
659,717
15.67
13
13
Arab National Bank
S.Arabia
12/09
3,870,470
3,379,013
14.54
633,574
16.37
14
14
Saudi British Bank
S.Arabia
12/09
3,487,392
3,102,355
12.41
543,288
15.58
15
17
Commercial Bank of Qatar
Qatar
12/09
3,294,975
2,740,578
20.23
417,996
12.69
16
15
Mashreq Bank
UAE
12/09
3,225,564
2,908,358
10.91
289,828
8.99
17
20
Union National Bank
UAE
12/09
2,904,334
2,095,297
38.61
315,155
10.85
18
19
Ahli United Bank
Bahrain
12/09
2,581,431
2,394,777
7.79
226,086
8.76
19
21
Arab Banking Corporation
Bahrain
12/09
2,581,000
2,088,000
23.61
154,000
5.97
20
22
Qatar Islamic Bank
Qatar
12/09
2,470,536
1,961,794
25.93
362,718
14.68
21
16
Dubai Islamic Bank
UAE
12/09
2,447,084
2,834,149
-13.66
330,322
13.50
22
25
Saudi Investment Bank
S.Arabia
12/09
1,985,759
1,762,293
12.68
144,029
7.25
23
28
Abu Dhabi Islamic Bank
UAE
12/09
1,946,740
1,536,684
26.68
21,260
1.09
24
26
Bank Muscat
Oman
12/09
1,847,575
1,630,053
13.34
191,476
10.36
25
23
Gulf International Bank
Bahrain
12/09
1,779,400
1,925,500
-7.59
-152,600
-8.58
26
-
Albaraka
Bahrain
12/09
1,736,845
1,550,161
12.04
167,386
27
27
Al Rayan
Qatar
12/09
1,635,598
EXPLAINING 1,563,126 4.64
9.64
ISLAMIC 241,607
14.77
267,106
16.50
28
31
Doha Bank
Qatar
12/09
1,618,656
INSURANCE 1,349,287 19.96
29
24
Commercial Bank of Kuwait
Kuwait
12/09
1,526,953
1,763,805 -13.43 527 0.03 akaful looks to avoid the 1,524,040 -1.20 23,774 1.58 religiously problematic aspects of 1,263,401 17.44 71,381 4.81 conventional risk management 1,282,185 13.69 218,895 15.02 services by separating shareholder 1,401,325 1.99 -190,700 funds from policyholder funds. -13.34 131,606 973.64 there is -97,256 -6.88 Through Takaful a
30
29
Saudi Hollandi Bank
S.Arabia
12/09
1,505,820
31
34
Burgan Bank
Kuwait
12/09
1,483,714
32
33
Commercial Bank of Dubai
UAE
12/09
1,457,755
33
30
Arcapita
Bahrain
12/09
1,429,268
34
-
Gulf Bank
Kuwait
12/09
1,412,967
35
-
Al Khalij Commercial Bank
Qatar
12/09
1,326,019
36
35
Bank Al Jazira
S.Arabia
12/09
1,199,214
37
37
Sharjah Islamic Bank
UAE
12/09
1,161,938
38
38
39 40
39 44
Al-Ahli Bank of Kuwait Bank of Sharjah
Kuwait UAE
12/09 12/09
1,144,937 1,116,267
41
36
Investcorp
Bahrain
12/09
959,976
Ithmaar Bank
Bahrain
12/09
937,399
42
41
Bank of Kuwait and the Middle East
Kuwait
12/09
821,064
43
42
Al Bilad
S.Arabia
12/09
802,572
44
49
RAK Bank
UAE
12/09
762,119
45
45
National Bank of Oman
Oman
12/09
650,400
46
47
National Bank of Bahrain
Bahrain
12/09
641,940
47
50
Bank of Bahrain and Kuwait
Bahrain
12/09
614,444
48
46
Kuwait International Bank
Kuwait
12/09
600,045
49
43
50
-
UGB
Bahrain
12/09
572,325
Ahli Bank of Qatar
Qatar
12/09
535,686
T
1,247,180 45,897 commitment6.32 to distribute technical3.46 profits to policyholders, and 1,236,480 -3.01 7,352 0.61 investment in1.48 non-Shari’ah compliant 1,145,007 70,881 6.10 assets is studiously avoided. 1,107,837 3.35 135,715 It is 11.85 also based on the principle of mutual 1,047,651 6.55 129,563 11.61 assistance and voluntary contribution 708,196 35.55 60,193 6.27 – where risk is shared collectively and 1,149,351 -18.44 -233,369 -24.90 voluntarily by a group of participants. 861,702 Through the-4.72 payment of49,541 a voluntary6.03 856,757 -6.32 donation and the clear -66,402 definition of-8.27 the 566,691 197,861 25.96 type of loss,34.49 impermissible elements 641,301 1.42 54,800 8.43 such as ‘uncertainty’ and ‘excessive risk-taking’ 11.03 are removed from the 17.74 578,150 113,890 contract. Hence, 555,095 10.69 it overcomes 93,145 15.16 scholars’ objections to-28,529 traditional -4.75 585,106 2.55 forms of insurance, which are seen 4.17 as 815,251 -29.80 23,843 akin to gambling. 450,036 19.03 82,446 15.39
Y-O-Y: year-on year; ROA: return on assets; NR: not ranked; *: Investcorp and Arcapita six months results to end December 2009.
May 2010 gulfbusiness.com
41
THE BUSINESS GCC Top 50 Banks TOP 50 GCC BANKS TOTAL NET PROFIT ($000s) Rank 2009
Rank 2008
BANK NAME
Country
Year Ended
Net Profit 2009
Net Profit 2008
Growth Y-O-Y (%)
1
1
Al Rajhi Banking and Investment Corporation
S.Arabia
12/09
1,809,073
1,739,894
3.98
2
2
SAMBA
S.Arabia
12/09
1,217,244
1,187,690
2.49
3
4
4
13
Qatar National Bank
Qatar
12/09
1,149,099
1,003,171
14.55
National Commercial Bank
S.Arabia
12/09
1,080,012
561,895
92.21
5
5
National Bank of Kuwait
Kuwait
12/09
923,735
933,419
-1.04
6
3
Emirates NBD
UAE
12/09
910,772
1,003,580
-9.25 10.51
7
7
First Gulf Bank
UAE
12/09
901,800
816,010
8
6
National Bank of Abu Dhabi
UAE
12/09
822,871
822,970
-0.01
9
10
Riyad Bank
S.Arabia
12/09
810,138
703,669
15.13 -11.82
10
9
Banque Saudi Fransi
S.Arabia
12/09
659,717
748,176
11
11
Arab National Bank
S.Arabia
12/09
633,574
662,966
-4.43
12
8
Saudi British Bank
S.Arabia
12/09
543,288
778,672
-30.23
13
16
Commercial Bank of Qatar
Qatar
12/09
417,996
464,121
-9.94
14
17
Qatar Islamic Bank
Qatar
12/09
362,718
451,124
-19.60
15
14
Dubai Islamic Bank
UAE
12/09
330,322
471,634
-29.96
16
18
Union National Bank
UAE
12/09
315,155
392,373
-19.68 -38.54
17
15
Mashreq Bank
UAE
12/09
289,828
471,568
18
24
Doha Bank
Qatar
12/09
267,106
259,957
2.75
19
12
Kuwait Finance House
Kuwait
12/09
250,331
619,333
-59.58
20
25
Al Rayan
Qatar
12/09
241,607
250,701
-3.63
21
22
Ahli United Bank
Bahrain
12/09
226,086
309,742
-27.01
22
30
Commercial Bank of Dubai
UAE
12/09
218,895
210,277
4.10
23
32
RAK Bank
UAE
12/09
197,861
173,382
14.12
24
26
25
-
Bank Muscat
Oman
12/09
191,476
243,459
-21.35
Albaraka
Bahrain
12/09
167,386
201,013
-16.73
26
51
Arab Banking Corporation
Bahrain
12/09
154,000
-836,000
NA
27
35
Saudi Investment Bank
S.Arabia
12/09
144,029
141,338
1.90 -16.87
28
33
Al-Ahli Bank of Kuwait
Kuwait
12/09
135,715
163,262
29
39
Bank of Sharjah
UAE
12/09
129,563
111,782
15.91
30
40
National Bank of Bahrain
Bahrain
12/09
113,890
92,390
23.27
31
42
Bank of Bahrain and Kuwait
Bahrain
12/09
93,145
71,645
30.01
32
38
Ahli Bank of Qatar
Qatar
12/09
82,446
116,941
-29.50
33
36
Burgan Bank
Kuwait
12/09
71,381
131,684
-45.79
34
45
Sharjah Islamic Bank
UAE
12/09
70,881
63,139
12.26
35
37
National Bank of Oman
Oman
12/09
54,800
117,922
-53.53 -72.82
36
31
37
-
38
29
Bank of Kuwait and the Middle East
Kuwait
12/09
49,541
182,270
Al Khalij Commercial Bank
Qatar
12/09
45,897
28,455
61.30
United Gulf Bank
Bahrain
12/09
23,843
214,617
-88.89
39
21
Saudi Hollandi Bank
S.Arabia
12/09
23,774
326,331
-92.71
40
27
Abu Dhabi Islamic Bank
UAE
12/09
21,260
232,014
-90.84
41
28
Bank Al Jazira
S.Arabia
12/09
7,352
222,300
-96.69
42
20
Commercial Bank of Kuwait
Kuwait
12/09
527
357,199
-99.85
43
43
Kuwait International Bank
Kuwait
12/09
-28,529
70,213
NA
44
47
Al Bilad
S.Arabia
12/09
-66,402
33,352
NA
45
44
Dubai Bank
UAE
12/09
-79,194
63,253
NA
46
52
Gulf Bank
Kuwait
12/09
-97,256
-1,274,823
NA
47
19
Abu Dhabi Commercial Bank
UAE
12/09
-139,600
369,856
NA
48
49 46
Gulf International Bank Arcapita
Bahrain Bahrain
12/09 12/09
-152,600 -190,700
-396,200 42,741
NA NA
41
Ithmaar
Bahrain
12/09
-233,369
85,162
NA
49 50
Y-O-Y: year-on year; ROA: return on assets; NR: not ranked; *: Investcorp and Arcapita six months results to end December 2009; **: Arab Banking Corporation and Gulf Bank are included in the above table owing to their important size and asset ranking in the Top 50 Gulf banks.
42
gulfbusiness.com May 2010
THE BUSINESS GCC Top 50 Banks Top 50 GCC BANKS 2009 ranked by Country ($000s) Rank 2008 BANK NAME 2009Takaful Rank contributions as % of total Bahrain 1 1 Arab Banking Corporation 2 3 Ahli United Bank 3 2 Gulf International Bank 4 Albaraka 5 5 Bank of Bahrain and Kuwait 6 6 National Bank of Bahrain 7 7 Ithmaar Bank 8 8 Arcapita Kuwait 1 1 National Bank of Kuwait 2 2 Kuwait Finance House 3 3 Gulf Bank 4 5 Burgan Bank 5 4 Commercial Bank of Kuwait 6 6 Al-Ahli Bank of Kuwait 7 7 Bank of Kuwait and the Middle East 8 8 Kuwait International Bank Oman 1 1 Bank Muscat 2 2 National Bank of Oman 3 Bank Dhofar Qatar 1 2 Qatar National Bank 2 3 Commercial Bank of Qatar 3 4 Doha Bank 4 5 Qatar Islamic Bank 5 Al Rayan 6 6 Ahli Bank of Qatar 7 Al Khalij Commercial Bank Saudi Arabia 1 1 National Commercial Bank 2 2 SAMBA 3 4 Riyad Bank 4 3 Al Rajhi Banking and Investment Corporation 5 5 Saudi British Bank 6 6 Banque Saudi Fransi 7 7 Arab National Bank 8 8 Saudi Hollandi Bank 9 9 Saudi Investment Bank 10 10 Bank Al Jazira 11 11 Al Bilad UAE 1 1 Emirates NBD 2 2 National Bank of Abu Dhabi 3 3 Abu Dhabi Commercial Bank 4 4 First Gulf Bank 5 5 Mashreq Bank 6 6 Dubai Islamic Bank 7 7 Union National Bank 8 8 Abu Dhabi Islamic Bank 9 9 Commercial Bank of Dubai 10 10 Bank of Sharjah 11 11 Dubai Bank 12 13 RAK Bank 13 12 Sharjah Islamic Bank
Year
Current
Previous Assets 08
Growth Y-O-Y (%)
Net Profit
09 ROA (%)
12/09 12/09 12/09 12/09 12/09 12/09 12/09 12/09
25,965,000 23,573,983 16,207,700 13,166,277 6,061,853 5,632,320 5,213,861 4,009,970
28,486,000 23,582,727 25,033,500 10,920,288 5,744,788 5,409,840 5,380,426 4,456,525
-8.85 -0.04 -35.26 20.57 5.52 4.11 -3.10 -10.02
154,000 226,086 -152,600 167,386 93,145 113,890 -233,369 -190,700
0.54 0.96 -0.61 1.53 1.62 2.11 -4.34 -4.28
12/09 12/09 12/09 12/09 12/09 12/09 12/09 12/09
44,715,940 39,354,110 16,434,821 14,183,212 12,455,559 10,275,378 7,833,016 3,950,584
43,389,462 37,390,574 17,542,553 13,877,578 15,271,812 10,769,362 7,943,262 3,840,426
3.06 5.25 -6.31 2.20 -18.44 -4.59 -1.39 2.87
923,735 250,331 -97,256 71,381 527 135,715 49,541 -28,529
2.13 0.67 -0.55 0.51 0.00 1.26 0.62 -0.74
12/09 12/09 12/09
15,196,716 4,670,700 3,862,133
15,657,756 4,690,673 3,437,961
-2.94 -0.43 12.34
191,476 54,800 65,956
1.22 1.17 1.92
12/09 12/09 12/09 12/09 12/09 12/09 12/09
49,198,605 15,724,927 12,620,027 10,774,403 6,618,327 5,061,608 4,807,709
41,739,527 17.87 1,149,099 16,836,515 -6.60 417,996 10,712,160 17.81 267,106 9,212,622 16.95 362,718 4,605,625 43.70 241,607 4,888,568 3.54 82,446 3,279,702 46.59 45,897 EXPLAINING ISLAMIC
12/09 12/09 12/09 12/09 12/09 12/09 12/09 12/09 12/09 12/09 12/09
68,810,650 49,594,533 47,156,751 45,641,110 33,907,547 32,232,587 29,485,743 15,801,780 13,406,050 8,013,634 4,654,528
59,147,193 16.34 1,080,012 1.83 the 47,704,317 akaful looks 3.96 to avoid 1,217,244 2.55 aspects1.90 of 42,574,007 religiously 10.76problematic 810,138 conventional 43,981,280 3.77risk management 1,809,073 4.11 35,109,518 services-3.42 543,288 1.55 by separating shareholder 33,563,936 659,717 1.97 funds from-3.97 policyholder funds. 32,348,571 -8.85 there633,574 1.96 Through Takaful is a 16,382,982 -3.55 23,774 commitment to distribute technical0.15 14,292,364 -6.20 144,029 1.01 profits to policyholders, and 7,338,587 7,352compliant 0.10 investment9.20 in non-Shari’ah 4,397,750 5.84 -66,402 It is -1.51 assets is studiously avoided.
12/09 12/09 12/09 12/09 12/09 12/09 12/09 12/09 12/09 12/09 12/09 12/09 12/09
76,723,837 53,636,109 43,618,000 34,160,800 25,761,487 22,971,191 20,616,831 17,461,581 10,022,630 4,921,486 4,739,828 4,664,201 4,352,738
also based on the principle of mutual 76,991,815 910,772 1.18 assistance-0.35 and voluntary contribution 44,888,220 19.49 1.83 – where risk is shared822,871 collectively and 40,220,042 -0.35 voluntarily 8.45 by a group-139,600 of participants. 29,273,539 16.70 3.08 Through the payment901,800 of a voluntary 1.48the clear 289,828 25,386,202 donation and definition of1.14 the 23,063,711 -0.40 330,322elements 1.43 type of loss, impermissible 17,758,038 16.10 315,155 1.77 such as ‘uncertainty’ and ‘excessive 13,960,922 25.07 21,260 risk-taking’ are removed from the 0.15 9,748,181 2.82 it overcomes 218,895 2.25 contract. Hence, 4,312,985 14.11 129,563 scholars’ objections to traditional 3.00 4,296,257 10.32 -79,194 -1.84 forms of insurance, which are seen as 3,795,443 22.89 197,861 5.21 akin to gambling. 4,225,621 3.01 70,881 1.68
Ended Assets 09 premiums written
2.75 2.48 2.49 3.94 5.25 1.69 1.40
INSURANCE
T
Y-O-Y: year-on year; ROA: return on assets; NR: not ranked; *: Investcorp and Arcapita six months results to end December 2009.
May 2010 gulfbusiness.com
43