How Gulf banks are absorbing Iran war shocks
GCC lenders had a strong hand when the Iran war erupted, affording them resilience to shocks, but risks remain.
Despite nearly five months of war in Iran and the broader Middle East, Gulf banks have continued to post strong earnings, with analysts noting that lenders' strong position at the start of the conflict has so far helped them withstand the economic fallout.
On Thursday, Abu Dhabi Commercial Bank reported a 34% annual jump, to 3.37 billion dirhams ($920 million), in its second-quarter profit, while the First Abu Dhabi Bank (FAB), the UAE's largest lender by assets, posted a 4% increase, to 5.72 billion dirhams.
Emirates NBD Bank saw a 2.2% annual rise in Q2 profit, to 6.44 billion dirhams ($1.73 billion).
In Saudi Arabia, Al Rajhi Bank posted a 14% jump in profit, to 7.01 billion Saudi riyals ($1.89 billion), for the period between April 1 and June 30. The Saudi National Bank reported a 7.6% increase, to 6.61 billion riyals ($1.78 billion), while Saudi Awwal Bank's profit rose 9.6%, to 2.3 billion riyals ($621 million). Bank Albilad posted a 3.4% increase in profit, to 791.6 million riyals ($213 million).
