Executive Summary
- GCC corporate earnings continue their recovery story, rising 17% in Q2'21 to touch $45,307 million.
- The growth narrative slowed down a little in the fourth quarter of 2020, declining 4% quarter on quarter with a surge in covid cases around the world. But 2021 has set the optimism back on track, with earnings nearly doubling from $24,199 million in Q4'2020 to $45,307 million in Q2'2021.
- It is interesting to note that one of the the heavy weight sector contributing to total earnings growth was the Banking sector, that marked an increase of 47% respectively in H1 2021 vis-à-vis H1 of 2020, despite increasing in revenue by a sheer 6%. This rise in banking earnings is attributed to lowering provisions for bad loans that were recorded in the prior quarters due to higher expected credit losses.
