GCC banks 2025 profit growth: assets up 12.6%

GCC banks reported 9.4% profit growth and 12.6% asset expansion in 2025, underscoring regional resilience during political and market uncertainty.

KPMG reported the headline figures showing 9.4% higher profits and a 12.6% rise in assets across Gulf Cooperation Council lenders in 2025, highlighting balance-sheet expansion despite geopolitical pressure. The firm also noted that capital ratios remained strong, even as banks absorbed higher funding costs and patchy loan demand in parts of the region.

For UAE buyers, developers and lenders these numbers matter in practical ways: easier access to credit when banks expand assets, but also selective lending as capital is deployed. This report explains the figures, what they mean for property finance in Abu Dhabi and Dubai, and where risks remain.

GCC banks delivered 9.4% profit growth and expanded assets by 12.6% in 2025, according to KPMG. These headline figures show stronger earnings and a larger balance sheet across the region during the year.

KPMG's summary points to asset expansion as a mix of higher lending, increased treasury positions and deposit growth that pushed total assets up 12.6%. Profit growth of 9.4% reflects higher net interest income in some markets and fee income recovery in others. Banks also maintained robust capital buffers, which KPMG describes as supportive amid geopolitical uncertainty, though the report did not publish a single regional capital ratio figure.

The headline growth masks variation between markets: some Gulf lenders grew lending aggressively, while others rebuilt liquidity and held larger securities portfolios. That divergence matters for developers and buyers because banks expanding on the back of low-yield treasury assets may be more conservative on construction finance than banks achieving profit growth from core lending.

Asset growth of 12.6% indicates banks had more deployable funds and larger balance sheets in 2025, which can support higher lending capacity for mortgages and developer finance in the UAE. This expansion, reported by KPMG, creates potential room for targeted credit growth to property sectors in Abu Dhabi and Dubai.

A larger asset base does not automatically translate to easier credit for all borrowers. Banks may direct asset growth into low-risk securities or short-term liquidity rather than new construction loans, depending on yield curves and risk appetite. KPMG flagged that while aggregate assets rose 12.6%, lending growth varied by country and by bank. For mortgage seekers, that means some lenders might offer competitive pricing where loan growth is a strategic priority, while others may tighten underwriting and lengthen approval times.

For developers the key is bank strategy: those with strong pre-sales, reputable contractors and clear cashflow are likelier to access finance even as some lenders focus on safer asset classes. Monitoring individual bank loan-to-value policies and pricing remains essential because a 12.6% regional asset rise does not erase credit selectivity at the deal level.

Profit growth of 9.4% improved earnings coverage and helped preserve capital buffers, reducing immediate solvency concerns for GCC banks in 2025. KPMG emphasised that stronger profits supported resilience despite external shocks.

Higher profits lift retained earnings, which in turn bolster equity and common equity Tier 1-like measures even if KPMG did not disclose a single regional CET1 figure. That creates headroom for loan loss provisioning without forcing distress sales of assets. At the same time, asset expansion of 12.6% can raise concentration risks if new lending clusters by sector or geography, so supervisors and bank boards watch portfolio composition closely.

The main risk is directional: if profit growth slows or net interest margins compress, the same 12.6% larger asset book could amplify stress by increasing funding needs. For bank counterparties and developers, the prudent assumption is that capital buffers are present but not infinite, so financing terms may tighten quickly if macro conditions deteriorate.

The combined 9.4% profit increase and 12.6% asset growth suggest a more resilient banking backdrop for UAE buyers and developers, but benefits will be uneven across lenders and projects. Those with strong balance sheets and pre-sales will see the most favourable terms.

Buyers in Abu Dhabi and Dubai may find competitive mortgage offers where banks prioritise retail lending to capture market share, while developers with completed phases and reputable contractors will get better access to construction finance. KPMG's regional aggregate numbers point to capacity, not universal looseness, so due diligence on lender appetite, margin expectations and required equity remains essential.

Practical steps for market participants include securing fixed-rate pre-approvals where possible, modelling interest-rate sensitivity if margins compress, and prioritising banks with demonstrated developer lending track records rather than assuming all GCC lenders will expand developer credit simply because assets rose 12.6%.

• Buyers: potential for competitive mortgages where banks chase retail growth
• Developers: easier access if strong pre-sales and contractors are present
• Risk: asset growth does not guarantee construction lending for weaker projects

KPMG's 2025 snapshot shows GCC banks recorded 9.4% profit growth and a 12.6% rise in assets, signaling balance-sheet strength across the region. Those figures create capacity for selected mortgage and developer lending in the UAE, but individual bank strategies and risk appetites will determine who benefits most.