KPMG in Qatar has unveiled the 11th edition of its Gulf Cooperation Council (GCC) listed banks’ results, offering a comprehensive analysis of financial outcomes and key performance indicators for leading commercial banks across the GCC, compared to the previous year.
Titled ‘Resilience in a shifting environment’, the report highlights major financial trends in the regional banking sector. By sharing insights from Financial Services leaders across its member firms in the six GCC countries, KPMG aims to provide valuable perspectives on banking markets and the financial performance of leading banks, driving banking strategies and shaping the industry across the region.
Commenting on significant trends in the GCC banking sector, Omar Mahmood, Head of Financial Services for KPMG in Central Asia, Arab States & South Asia and Partner at KPMG in Qatar, stated: “2025 has been a year of resilience, with GCC banks delivering strong growth in assets and profitability despite global uncertainties and regional geopolitical challenges. This reflects the sector’s robust capital position, effective risk management, and continued investment in innovation and digital transformation.”
Although this year’s report shows a drop in profitability for Banks in Qatar, predominantly due to the 15% global minimum tax charge incurred by qualifying banks and NIM pressures, the report also shows how banks in Qatar boast the lowest cost-to-income ratio at 27.0 percent and the highest coverage ratio for stage 3 loans at 86.6 percent.
Across the region, profitability rose by 9.4 percent, supported by asset growth of 12.6 percent, efficiency improvements, and stronger returns on equity. Credit provisions increased by nearly 20 percent, reflecting a cautious approach to risk management amid heightened geopolitical uncertainty. Net interest margins declined slightly by 0.2 percent, while capital adequacy ratios improved to an average of 19.3 percent, underscoring the sector’s resilience.
While the current geopolitical tensions have not impacted 2025 results, it is expected to shape the operating environment in the coming year. Rising geopolitical risks could influence credit quality, funding costs, and investor sentiment, making resilience and adaptability even more critical for GCC banks as they look ahead to 2026.
Despite these challenges, GCC banks continue to demonstrate remarkable strength, maintaining stability and investor confidence. The sector remains a key driver of economic expansion, advancing the digital agenda, and adapting to ESG priorities across the region.