Country Banking Sector Report
Country banking sector report: UK — Q2 2026
UK banks posted strong first-half returns, led by NatWest’s 19.7% RoTE, as GDP grew 0.4% in Q2 2026. But with CPI back at 3.1% in August, three MPC members now want Bank Rate raised from 3.75%, and the £9.1bn motor finance scheme awaits a tribunal.
Country banking sector report: Indonesia — Q2 2026
Bank Indonesia raised its policy rate by 100 basis points to 5.75% in four weeks to defend the rupiah, yet bank lending growth accelerated to 12.67% in June while deposit growth slowed to 10.21%, lifting the loan-to-deposit ratio to 88.32%.
Country banking sector report: Turkey — Q2 2026
Turkish banks earned TL 527.4bn in H1 2026, up 24.8%, but Q2 profit fell about 17% on the quarter as funding costs rose, the NPL ratio climbed to 2.77% and capital adequacy slipped to 16.59% after forbearance ended, with the policy rate held at 37%.
Country banking sector report: Egypt — Q2 2026
Egyptian banks earned EGP 373.1bn in H1 2026, up 35.7%, as loans grew 25% and the NPL ratio fell to 1.8%, but securities and treasury bills worth 29.4% of assets and US action against Banque Misr's UAE branches cloud the outlook.
Country banking sector report: Nigeria — Q2 2026
Nigeria’s industry NPL ratio hit 9.94% at end-March 2026 after forbearance ended, even as 33 banks raised ₦4.65tn, GDP grew 4.43% in Q2 and the CBN reset its policy rate to 23%; four of the five largest groups await CBN approval to publish H1 accounts.
Country banking sector report: Philippines — Q2 2026
Philippine banks lifted H1 2026 profit 5.2% to PHP 208.4 billion on 13.1% growth in net interest income, but provisions jumped 32.2% as the BSP raised rates three times to 5.00% and Q2 GDP growth slowed to 2.3%.
Country banking sector report: India — Q2 2026
Indian bank credit grew 16.5% in the year to end-June 2026 against deposit growth of 11.5%, and the top five banks lifted quarterly profit about 12%, while the RBI held the repo rate at 5.25% as CPI inflation rose to 4.82% by August.
Country banking sector report: Germany — Q2 2026
The CET1 ratio of German significant institutions stood at 16.91% and their NPL ratio at 1.84% in Q2 2026, but the NPL ratio on loans collateralised by commercial real estate rose to 7.16% and real estate charges cut Helaba's first-half pre-tax profit 58% as the ECB raised rates twice to 2.50%.
Country banking sector report: Saudi Arabia — Q2 2026
Saudi bank credit rose 7.3% and deposits 8.9% in the year to June 2026 even as real GDP shrank 4.7% in Q2 as oil activity slumped by about a quarter. Pre-zakat bank profits climbed 5.8% to SAR 53.95bn in H1, with the NPL ratio at 1.06%.
Country banking sector report: UAE — Q2 2026
UAE banks kept lending through the regional conflict: gross credit rose about 2.3% in Q2 2026 to AED 2,757.8bn and ADCB lifted H1 pre-tax profit 28%, while sector capital adequacy was 16.8% at end-March and the base rate rose to 3.90% in September.
Country banking sector report: China — Q2 2026
China’s bank margins ticked up to 1.41% in Q2 2026, their first quarterly rise in four years, yet sector profit slipped 0.57% and rural lenders’ NPL ratio climbed to 2.83% as loan growth slowed to 5.2% and property investment fell 18%.
Country banking sector report: Switzerland — Q2 2026
Swiss GDP grew 1.5% in Q2 2026 and UBS lifted profit 17% to $2.8 billion, but zero SNB rates keep squeezing deposit-funded lenders while a proposed rule requiring about $20 billion of extra CET1 at UBS dominates the outlook.