The banking sector in the Middle East and North Africa recorded a 30 percent annual rise in net profits in the first half of 2023, according to top M&A financial advisor, Ernst and Young(EY) report released on Monday. According to EY MENA H1 2023 banking report, the sector also recorded a year-on-year hike of 12.2 percent in net assets in the six months to the end of June 2023. The company declared that the sectoral growth was due to rising demand for loans, nourished by the region's overall economic expansion and its diversification efforts. "With limited effect to the ongoing banking industry crisis in the US and Europe ,the Gulf Cooperation Council banking sector has undergone a fundamental transformation and is now pursuing a strong upward trajectory, boosted by an increasing demand for lending," said EY MENA's financial services leader, Charlie Alexander, in a statement. "This development is playing an increasingly important role in the region's overall economic growth amidst ongoing economic diversification drives," he added. Moreover, return on equity jumped by 6.18 percent year-on-year in the first half of 2023, while the net interest margin advanced by 0.2 percent. Operating income and total deposits exhibited substantial growth during the period, increasing 18.8 percent and 6.08 percent, respectively.
