Emirates NBD and other banks in the Middle East and Africa region experienced an increase in their market capitalization during the third quarter of the year. Emirates NBD, based in Dubai, saw the most significant growth with a 23.03 percent increase in market cap. Overall, 16 out of the 20 sampled banks showed an improvement in their market cap during this period, according to S&P Global data. Mashreq and Bank Albilad also saw substantial increases in their market caps by 22.34 percent and 21.23 percent, respectively.
The UAE banks dominate the Arab banking sector with a 24.3 percent share of assets, according to the Arab Monetary Fund. The UAE banking sector experienced an 11 percent growth in assets driven by an increase in credit and investments. The top ten banks in the UAE maintained a strong capital position with improved asset quality in the second quarter of the year, leading to increased profitability. The banking sector in the region is showing signs of growth and stability amidst economic challenges.
Qatar National Bank moved up the rankings to third place as its market cap grew by 15.70 percent during the quarter, surpassing Kuwait Finance House. Al Rajhi Banking & Investment Corp. remains the region’s largest bank by market cap with a value of $93.05 billion. However, some banks experienced decreases in their market cap, such as Saudi Awwal Bank with a 9.06 percent decline. Saudi National Bank also saw a 5.38 percent decrease but remained in second place with a market cap of $54.40 billion.
South African banks such as FirstRand Ltd., Standard Bank Group Ltd, and Capitec Bank Holdings Ltd. also experienced growth in their market value due to returning investor confidence in the rand. The banking sector in various regions is witnessing positive trends and resilience in the face of economic uncertainties. Overall, the data suggests a positive outlook for the banking industry in the MEA region, with several banks showing significant improvements in their market performance.
