Emirates NBD Leads Market Cap Growth Among Middle East and African Banks in Q3

Most banks in the Middle East and Africa (MEA) posted significant increases in market capitalisation in the third quarter of 2024, with Dubai-based Emirates NBD leading the surge, according to data from S&P Global.

Emirates NBD saw its market cap rise by 23.03% quarter over quarter, reaching $34.91 billion by the end of September. This marked the highest growth among the 20 sampled banks in the region. The report highlighted that 16 of these banks recorded market cap improvements during the three months ending on September 30.

Dubai’s Mashreq Bank and Saudi Arabia’s Bank Albilad also demonstrated strong performance, with their market capitalisations growing by 22.34% and 21.23%, respectively. The UAE banking sector as a whole continues to dominate the Arab financial landscape, holding the largest share of assets at 24.3%, according to the Arab Monetary Fund (AMF). The sector’s asset growth reached 11%, driven by a rise in credit and investments.

The UAE’s top ten banks remained robust in capital position, with asset quality improving during the quarter ending in June 2024. Profitability also rose, with a 35.4% drop in impairment charges and higher net interest income pushing second-quarter profits to Dh21.5 billion, according to the latest Banking Pulse report from Alvarez & Marsal.

Qatar National Bank (QNB) also posted impressive gains, climbing two places to become the third-largest bank by market cap in the region, with a 15.70% increase. It overtook Kuwait Finance House, which now ranks fifth. Saudi Arabia’s Al Rajhi Banking & Investment Corp. maintained its position as the region’s largest bank by market cap, reaching $93.05 billion, up 9.0% from the previous quarter.

However, not all banks saw growth during the quarter. Saudi Awwal Bank experienced the largest drop in market cap among the sampled institutions, declining by 9.06% and slipping four places to the 13th spot. Saudi National Bank also saw a decline, with its market cap falling by 5.38% to $54.40 billion, though it held onto its position as the region’s second-largest bank.

Meanwhile, South African banks, including FirstRand Ltd., Standard Bank Group Ltd., and Capitec Bank Holdings Ltd., benefitted from renewed investor confidence in the rand, contributing to growth in their market values.

The third-quarter performance of MEA banks reflects growing investor confidence and economic recovery in the region, with UAE and Saudi banks continuing to lead the sector’s expansion.