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8/3/2019 GCC Banking 082011
1/14
Global Research
Sector-Banking
August 2011
GCC Banking Sector Quarterly 2Q11
GCC banking profitability increased by 25% in 2Q11
Kuwait & Oman banks offer a painful negative surprise for 2Q11
GCC banks witness 15% drop in provisions Qatar & UAE banks steal limelight with stellar top-line growth
GCC banking profitability increased by 25% 2Q11
GCC banks under our coverage saw another good quarter with profits rising 28%YoY and4%QoQ. Adjusted for distortions (one-off gains and high provisions booked by ENBD andADCB in 1Q11 & 2Q11 resp.) this figure is reduced to 25%YoY and 4%QoQ highnonetheless. UAE and Qatar stood out in terms of highest profit growth achieved YoYduring the quarter while Oman was the only country that witnessed a decline.
Kuwait & Oman offer a painful negative surprise for 2Q11
The results for Kuwait & Oman banks under our coverage for 2Q11 offered a negativesurprise with almost all banks in Kuwait exhibiting results much below our expectations withthe exception of Burgan Bank. CBK offered the highest deviation from our forecast amongKuwaiti banks. Bank Muscat and NBO were the exceptions amongst Omani banks wherethe remaining banks exhibiting a strong negative deviation. While aggregate results of UAEand KSA banks were in line with our expectations (
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Global Research GCC GCC Banking Quarterl
August 2011 2
Name Country Mkt. Cap Current
US$ mn 1m 3m 12m 2010 a 201 1e 20 10a 2011e 2 010a 2011e 2010a 201 1e 2010a 20 11e Price
National Bank of Kuwait Kuwait 14,889 -8.8% -16.1% -0.2% 13.4 13.0 2.0 1.9 16.0% 14.7% 2.3% 2.3% 3.3% 14.3% 1.04
Kuwait Finance House Kuwait 8,786 -9.2% -12.7% -9.4% 22.6 23.9 2.0 1.9 9.0% 8.2% 0.9% 0.8% -5.6% 51.6% 0.89
Com mercial Bank of Kuwait Kuwait 3 ,876 -4.6% -10.8% -4.2% 26.1 24.3 2.3 2.2 8.9% 9.1% 1.1% 1.1% 7.2% 69.6% 0.83
Burgan Bank Kuwait 2,512 -5.1% -12.3% 37.5% 145.6 15.6 1.6 1.5 1.3% 9.9% 0.1% 1.0% 835.8% 32.7% 0.4
Al Rajhi Bank KSA 27,995 -5.1% -5.4% -6.6% 15.5 13.4 3.5 3.6 22.9% 26.3% 3.8% 4.0% 15.7% 23.9% 70.0
SAMBA KSA 10,678 -8.1% -17.4% -22.7% 9.0 8.6 1.6 1.4 18.4% 17.3% 2.4% 2.4% 5.1% 14.8% 44.5
Riyad Bank KSA 9,638 -2.2% -4.1% -4.4% 12.8 11.7 1.2 1.2 9.8% 10.7% 1.6% 1.7% 9.8% 21.9% 24.1Saudi British Bank KSA 8,298 -4.8% -5.7% -3.0% 16.5 12.9 2.1 1.9 13.3% 15.3% 1.5% 1.9% 28.1% 19.2% 41.5
Arab National Bank KSA 6,561 -4.9% -11.1% -0.5% 12.9 11.3 1.6 1.6 12.8% 14.0% 1.7% 1.8% 14.3% 21.0% 28.9
Saudi Investment Bank KSA 2,603 -5.3% -6.1% -1.4% 22.7 10.9 1.2 1.1 5.5% 10.4% 0.8% 1.7% 108.3% 37.5% 17.75
Banque Saudi Fransi KSA 8,098 -3.7% -10.7% 1.5% 10.8 9.8 1.7 1.6 16.6% 16.8% 2.3% 2.4% 10.6% 16.6% 42.0
Saudi Hollandi Bank KSA 2,443 -7.0% -8.3% -14.5% 11.6 9.3 1.4 1.3 13.2% 14.5% 1.4% 1.8% 24.0% 18.3% 27.7
Alinma Bank KSA 3,659 -7.6% -9.9% -16.1% 903.0 64.7 0.9 0.9 0.1% 1.3% 0.1% 0.6% 1295.6% 61.4% 9.15
Bank AlJazira KSA 1,292 -15.0% -17.2% -3.3% 167.6 23.7 1.0 1.0 0.6% 4.2% 0.1% 0.6% 608.4% 77.3% 16.15
Bank AlBilad KSA 1,432 -3.5% -6.0% -7.7% 58.2 15.2 1.7 1.6 3.0% 10.8% 0.5% 1.5% 283.0% 58.4% 17.9
Abu Dhabi Com mercial Bank UAE 4,464 -10.7% 4.3% 76.5% 43.0 5.1 1.1 0.9 2.5% 18.9% 0.2% 1.7% 738.4% -22.1% 2.93
Emirates NBD UAE 6,037 -7.4% 3.9% 74.8% 9.5 5.3 0.7 0.7 8.1% 13.5% 0.8% 1.4% 79.0% 15.4% 3.99
First Gulf Bank UAE 6,289 -13.5% -17.2% 21.7% 6.8 6.6 1.2 1.0 18.5% 16.9% 2.6% 2.4% 2.5% 22.0% 15.4
National Bank of Abu Dhabi UAE 8,869 1.8% 1.3% 23.6% 8.8 9.0 1.6 1.4 20.2% 16.9% 1.8% 1.6% -1.4% 25.9% 11.35
Union National Bank UAE 2,249 -7.5% -6.5% 27.2% 6.1 5.6 0.8 0.8 14.9% 14.3% 1.7% 1.7% 9.1% 25.0% 3.3
Qatar National Bank Qatar 24,090 -3.9% -4.9% 42.8% 15.4 12.0 3.9 2.3 27.9% 24.2% 2.8% 2.9% 27.7% 29.5% 137.9
Commercial Bank of Qatar Qatar 5,002 1.0% 0.1% 10.6% 11.1 10.9 1.7 1.5 15.1% 14.3% 2.7% 2.6% 2.3% 10.3% 73.6
Doha Bank Qatar 3,185 9.4% 3.5% 34.0% 11.0 9.8 2.3 2.0 21.0% 21.5% 2.3% 2.4% 12.5% 10.5% 56.1
Qatar Is lamic Bank Qatar 5 ,055 -1.1% -3.8% 12.0% 13.8 13.3 2.3 1.8 17.2% 15.3% 2.9% 2.5% 3.9% 15.1% 77.9Al Rayan Bank Oman 4,746 -4.0% -2.3% 64.6% 14.3 12.6 3.4 2.3 23.8% 21.8% 4.1% 3.4% 12.9% 20.5% 23.04
Bank Muscat Oman 2,695 -11.4% -8.0% -7.9% 10.2 9.3 1.3 1.2 13.5% 13.2% 1.7% 1.9% 9.7% 18.1% 0.6
National Bank Of Oman Oman 865 -6.4% 0.0% -2.7% 12.3 11.1 1.3 1.2 10.5% 11.0% 1.5% 1.6% 9.9% 15.8% 0.3
Oman International Bank Oman 624 -5.0% -5.0% 3.7% 13.7 13.3 1.4 1.3 10.3% 10.4% 1.6% 1.5% 2.9% 8.8% 0.25
Bank Dhofar Om an 1,348 0.0% -12.2% -6.5% 15.6 13.6 2.3 2.0 15.5% 15.7% 2.1% 2.2% 15.1% 10.0% 0.5
Ahli Bank Oman 529 -5.2% -5.6% 4.7% 14.6 10.1 2.0 1.6 14.3% 17.9% 2.0% 2.4% 45.3% 17.5% 0.25
Source: GlobalResearch* All figures in local currency unless mentioned otherwise
Banking Universe Data Set
Stock Performance P/E P/BV ROE ROA Earnings Growth
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Global Research - GCC GCC Banking Quarterly
August 2011 3
GCC banking profitability witnesses a rise of 25%YoY in 2Q11
GCC banks under our coverage saw another good quarter with profits rising 28%YoY and 4%QoQ. Adjusted
for distortions (one-off gains and high provisions booked by ENBD and ADCB in 1Q11 & 2Q11 resp.) this
figure is reduced to 25%YoY and 4%QoQ high nonetheless. UAE and Qatar stood out in terms of highest
profit growth achieved YoY during the quarter while Oman was the only country that witnessed a decline.
Adjusted Banking Profits - 2Q11
Source: Company Financials, Global Research
On an aggregate level, GCC banks witnessed a healthy growth in the net interest income (+7%YoY) and
exhibited a strong rise in non-interest income(+23%YoY). A major contributor to the jump in profits was the
significant drop in provisions (-15%YoY). Speaking sequentially, while profits were up 4%QoQ, the credit
goes to a robust jump in NII (+5%QoQ) since non-interest income retreated (-3%QoQ) and provisions rose
7%QoQ.
Kuwait & Oman offer a stinging negative surprise for 2Q11
The results for Kuwait & Oman banks under our coverage for 2Q11 offered a negative surprise with almost
all banks in Kuwait exhibiting results much below our expectations with the exception of Burgan Bank. CBK
offered the highest deviation from our forecast among Kuwaiti banks.
2Q11 Earnings vs Expectations
Country Analysis Variation
UAE In line 0.9%
Kuwait Negative surprise -21.1%
Oman Negative surprise -38.8%
Qatar Positive surprise 7.8%KSA In line 4.9%
Source: Company Financials, Global Research
In line: 5%, higher than forecast
Bank Muscat and NBO were the exceptions amongst Omani banks where the remaining banks exhibiting a
strong negative deviation. While aggregate results of UAE and KSA banks were in line with our expectations
(
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August 2011 4
2Q11 Earnings vs Expectations
Bank Analysis Bank Analysis
Abu Dhabi Commercial Bank Positive surprise First Gulf Bank In line
Ahli Bank of Oman Negative surprise Kuwait Finance House Negative surprise
Al Rajhi Bank In line National Bank of Abu Dhabi In line
Al Rayan Bank In line National Bank of Kuwait Negative surprise
Arab National Bank In line National Bank of Oman Positive surprise
Bank Al Bilad Positive surprise Oman International Bank Negative surprise
Bank Dhofar Negative surprise Qatar Islamic Bank Positive surprise
Bank Muscat Positive surprise Qatar National Bank In line
Banque Saudi Fransi In line Riyad Bank In line
Burgan Bank In line Samba Financial Group Negative surprise
Commercial Bank of Kuwait Negative surprise Saudi Hollandi Bank Positive surprise
Commercial Bank of Qatar Positive surprise The Saudi British Bank Positive surprise
Doha Bank Positive surprise The Saudi Investment Bank Positive surprise
Emirates NBD Negative surprise Union National Bank In line
Source: Company Financials, Global ResearchIn line: 5%, higher than forecast
Qatar and UAE banks steal limelight on robust top-line performance
Albeit banking sectors of all the GCC countries with the exception of KSA (-3%YoY) saw a rise in their NII,
Qatar, Kuwait and UAE banks saw the highest jump (among peers) in their net interest income in 2Q11, up
13%YoY, 13%YoY and 12%YoY respectively. Qatars top-line rose on account of robust volumetric growth
(loans jumped 19%YoY and interest earning assets (IEA) grew 34%YoY) while net interest margin (NIM)
eroded by 44bps. On a quarterly basis, NII was up 4%QoQ that too on the basis of a 5%QoQ rise in IEA
while NIM lost 6bps over the previous quarter.
In Kuwait, volumes grew only 5%YoY but 19bps were added to the NIM as cost of funds saw further
rationalization. On a quarterly basis, NII improved by 6%QoQ driven largely by a 13bps addition to the NIM
while IEA remained inched up by 2%.
As for UAE a joint effort from both the factors led to the mentioned performance with the IEA up 10%YoY
(net loans up by 3%YoY) and NIM increased by 5bps. On a quarterly basis however, volumes shrank by
0.5%QoQ exhibiting stagnancy while NIM increased by a heavy 11bps nonetheless UAE banks secured a
6%QoQ jump in NII. The quarterly increase in NIM can be attributed to excess liquidity in the UAE banking
system leading to decline in interbank rates which trickled down to lower cost of funds; as per our
calculations, cost of funds fell more sharply than yield on assets 31bps against 16bps respectively from the
previous quarter.
GCC banks witness 15%YoY drop in provisions, 53%YoY down for KSA
GCC banks (under our coverage) witnessed a 15%YoY drop in provision expense for the quarter under
review. Provisions were lower for all countries except for Oman and Kuwait provisions taken by Omani
banks doubled in 2Q11 while that for Kuwait increased by 4%YoY. KSA banks stood out with provisions
dropping to half of what they used to be while UAE and Qatar saw a decline of 9 10%YoY.
The substantial rise in provisions for Omani banks was led by its 2 largest banks namely Bank Muscat and
NBO while the remaining either saw decline in provisions or contributed little to the increase. In Kuwait,
Burgan Bank was the only bank in our coverage that saw a decline in provisions (that too a massive one)
only to be overshadowed by significant rise coming from NBK and CBK while that of KFH remained
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Global Research GCC GCC Banking Quarterly
August 2011 5
unchanged but high nevertheless. All KSA banks under our coverage saw significant decline in provisions
with the exception of SHB which posted a 24%YoY increase. The absolute increase in SHBs provisions was
however only marginal and did portray a declining trend QoQ. UAE based banks saw a mixed trend in terms
of provisions with most banks exhibiting an increase. The increase in provisioning levels of these was
however offset by the decrease shown by ENBD and ADCB during the quarter. Noteworthy, albeit ADCB
saw a decline in provisions YoY, these were still on the higher side perhaps as a smoothening off due to
one-off windfall gains booked by the bank during the quarter provisions are therefore expected to slide off
for ADCB going forward, given no new delinquencies are added.
Provisions in 2Q11
YoY QoQ
GCC -15% 7%
UAE -9% 7%
Kuwait 4% 29%
KSA -53% -13%
Oman 108% -19%
Qatar -10% -3%
Source: Company Financials
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August 2011 5
Money Supply (M2)
Saudi Arabia Qatar
UAE Kuwait
Oman Bahrain
Source: Central Banks, Global Research
-2.3%
1.3%
3.0%
-1.4%
-0.4%
1.9%
5.4%
-2.1%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
23
24
24
25
25
26
26
27
27
28
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
KWDbn
1.5%
0.6%
2.0%
1.2% 1.2%
2.6%
6.1%
2.1%
0%
1%
2%
3%
4%
5%
6%
7%
660
680
700
720
740
760
780
800
820
840
860
880
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
AEDbn
11%
3%
13%
-4%
7%6%
2%
17%
-5%
0%
5%
10%
15%
20%
0
50
100
150
200
250
300
350
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
QARbn
-0.2%
5.8%
1.7%
6.1%
-0.1%
2.6%
0.6%0.0%
-1%
0%
1%2%
3%
4%
5%
6%
7%
6.0
6.2
6.4
6.66.8
7.0
7.2
7.4
7.6
7.8
8.0
8.2
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
BHDbn
1%
3%
5%
-1%
2%
5%
-1%
1%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7.0
7.2
7.4
7.6
7.8
8.0
8.2
8.4
8.6
8.8
9.0
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
Apr-11
OMRbn
-0.1%
2.6%
1.3%
3.0%
1.0%
3.9%
6.5%
3.1%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
-
200
400
600
800
1,000
1,200
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
SARbn
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Global Research GCC GCC Banking Quarterly
August 2011 7
Deposits
Saudi Arabia Qatar
UAE Kuwait
Oman Bahrain
Source: Central Banks, Global Research
-0.8%
2.5%1.6%
-0.5%-0.6%
0.8%
4.9%
-4.2%
-6%
-4%
-2%
0%
2%
4%
6%
26
27
27
28
28
29
29
30
30
31
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
KWDbn1.6%
0.6%
-1.6%
1.9%
2.8%
3.6%
5.3%
1.9%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
850
900
950
1,000
1,050
1,100
1,150
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
AEDbn
8%
3%
10%
0%
7%6%
1%
14%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
50
100
150
200
250
300
350
400
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
QARbn
-1%
4%
0.2%
6.2%
3.6%2.5%
9.4%
-3.3%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
0
2
4
6
8
10
12
14
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
BHDbn
2%3%
9%
0%1%
5%
1% 1%
-2%
0%
2%
4%
6%
8%
10%
0
2
4
6
8
10
12
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
Apr-11
OMRbn
-0.6%
3.2%
-2.1%
2.4%
1.3%
3.1%
5.9%
1.1%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%4.0%
5.0%
6.0%
7.0%
800
850
900
950
1,000
1,050
1,100
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
SAR
bn
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Loans
Saudi Arabia Qatar
UAE Kuwait
Oman Bahrain
Source: Central Banks, Global Research
0.6%
1.9%
1.3%
0.1%
-0.6%
0.3%
0.9%
0.0%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
24.5
24.6
24.7
24.8
24.9
25.0
25.1
25.2
25.3
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
KWDbn
1.2%
-0.3%
0.4% 0.4%
1.2%
-0.7%
1.6%
0.8%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
990
1,000
1,010
1,020
1,030
1,040
1,050
1,060
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
AEDbn
7%8%
7%
2%
4%
2%
0%
8%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
0
50
100
150
200
250300
350
400
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
QARbn
-2%
2%
-2.1%
-1.1%
2.6%
-3.0%
0.1% 0.1%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
5.5
5.6
5.7
5.8
5.9
6.0
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
B
HDbn
-0.3%
2.2%
1.7% 1.7%
3.9%
1.4%
2.3%
0.4%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
8.5
9.0
9.5
10.0
10.5
11.0
11.5
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
Apr-
11
OM
Rbn
2.4%
-1.6%
1.6% 2.0% 1.7%
0.3%
2.9% 2.7%
-2%
-1%
0%
1%
2%
3%
4%
680
700
720
740
760
780
800
820
840
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
SARbn
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Liquidity (Loans/Deposits ratio)Saudi Arabia Qatar
UAE Kuwait
Oman Bahrain
Source: Central Banks, Global Research
81%
82%
83%
84%
85%
86%
87%
88%
89%
90%
91%
-6%
-4%
-2%
0%
2%
4%
6%
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
Loans/Deposits Deposits Loans
85%
90%
95%
100%
105%
110%
115%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
Loans/Deposits Deposits Loans
73%
74%
75%
76%
77%
78%
79%80%
81%
82%
83%
-3%
-2%
-1%
0%
1%
2%
3%4%
5%
6%
7%
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
Loans/Deposits Deposits Loans
86%
88%
90%
92%
94%
96%
98%
100%
102%
104%
106%
108%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
Loans/Deposits (RHS) Deposits Loans
0%
10%
20%
30%
40%
50%
60%
70%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
Loans/Deposits Deposits Loans
96%
98%
100%
102%
104%
106%
108%
110%
-2%
0%
2%
4%
6%
8%
10%
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
Apr-11
Loans/Deposits Deposits Loans
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Interest rates (interbank 1year)
Saudi Arabia Qatar
UAE Kuwait
Oman Bahrain (6-month)
Source: Central Banks, Global Research
2.0%
2.4%
2.8%
3.2%
3.6%
4.0%
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
0.8%
0.9%
1.0%
1.1%
1.2%
1.3%
1.4%
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
2.0%
2.2%
2.4%
2.6%
2.8%
3.0%
3.2%
3.4%
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
1.2%
1.3%
1.4%
1.5%
1.6%
1.7%
1.8%
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
0.00%
0.02%
0.04%
0.06%
0.08%
0.10%
0.12%
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
0.2%
0.4%
0.6%
0.8%
1.0%
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
8/3/2019 GCC Banking 082011
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Global Research GCC GCC Banking Quarterly
August 2011 11
GCC Banks Comparative Standing 1Q11
LTD
Cost Income Ratio
Provisions to Total Income
Source: Financial Accounts, & Global Research
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
NBK
KFH
CBK
Burgan
RJHI
ANB
BSF
RIBL
SABB
SAMBA
SHB
SIBC
ALINMA
BJAZ
Bilad
NBAD
ENBD
FGB
UNB
ADCB
QNB
CBQ
DohaBank
QIB
BankMuscat
NBO
BankDhofar
OIB
AhliBank
0%
10%
20%
30%
40%
50%
60%
70%
80%
N
BK
KFH
C
BK
Burg
an
RJHI
ANB
B
SF
RIBL
SABB
SAMBA
SHB
SIBC
ALINMA
BJ
AZ
Bilad
NBAD
ENBD
FGB
UNB
ADCB
QNB
CBQ
DohaBa
nk
Q
IB
BankMusc
at
NBO
BankDhofar
O
IB
AhliBa
nk
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
NBK
KFH
CBK
Burgan
RJHI
ANB
BSF
RIBL
SABB
SAMBA
SHB
SIBC
ALINMA
BJAZ
Bilad
NBAD
ENBD
FGB
UNB
ADCB
QNB
CBQ
DohaBank
QIB
BankMuscat
NBO
BankDhofar
OIB
AhliBank
8/3/2019 GCC Banking 082011
12/14
Global Research GCC GCC Banking Quarterly
August 2011 12
GCC Banks Relative Valuation
Source: Financial Accounts, & Global Research
P/BV vs ROE
P/E vs Earnings Growth
NBK
KFH
CBK
RJHI
ANB
BSF
RIBL
SABB
SAMBA
SHB
SIBC
ALINMA
BJAZ
Bilad
NBAD
ENBD
FGB
UNB
ADCB
QNB
CBQ
Doha Bank
QIB
MARK
Bank Muscat
NBO
Bank Dh ofar
OIB
Ahli Bank
0%
5%
10%
15%
20%
25%
30%
0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
2012eROE
2012e P/BV
NBK
RJHI
ANB
BSF
RIBL
SABB
SAMBA
SHB
SIBCNBAD
ENBD
FGBUNB
ADCB
QNB
CBQ
Doha Bank
QIBMARK
Bank Muscat NBO
Bank DhofarOIBAhli Bank
10%
15%
20%
25%
30%
3.0 6.0 9.0 12.0 15.0
3-yrEarningsCAGR
2012e P/E
8/3/2019 GCC Banking 082011
13/14
Global Research GCC GCC Banking Quarterly
August 2011 13
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