The total earnings reached $12.8 billion were less than the profits posted during the previous quarter (Q1, 2011) by 7 percent. In H1,2011, the GCC corporate earnings had grown to $26.5 billion, an upswing of 5 percent compared to $25.3 billion H1, 2010.Citing the possible reasons behind the decline, Markaz report suggested that the corporate earnings declined due to weak performance by the telecom sector in the region. However, it added, banks and commodity companies continued to perform strongly. "The region's continued dominance as a petrochemical hub, global recovery, and spikes in commodity prices supported the performance of companies across the region," the report said.Aggregate net profits from the commodity sector were $3.4 billion (+54 percent YoY, +4 percent QoQ). Among sectors, banking continued to deliver the highest profits, at $5 billion. Robust demand and access to low cost funds improved spreads in this quarter. Telecom sector registered 66 percent YoY decline in net income due to Zain's one time profit from discontinued income reported in 2Q10. Excluding this one-time adjustment, the sector's earnings fell by only 11 percent YoY. Real estate sector recovered from the slump experienced last year and reported a profit of $386 million in Q2, 2011, up 127 percent YoY.Saudi Arabian companies posted a total profit of $12.7 billion during the first half of 2011, an increase of 25 percent. The increase was due to higher earnings reported during the Q2, 2011 by all the sectors across the board. Earnings of Kuwaiti companies during the 1H11 were down 33 percent YoY to $2.9 billion. The decline in earnings was mainly due to the decreased profits reported by the telecommunication sector in Kuwait. UAE companies reported a profit of $5.2 billion during the half year, an increase of 5 percent YoY. The surge in the banking sector performance during the year supported the increased profits.Qatar earnings during the first half of the year were $4.3 billion, almost flat compared to the previous year. The banking and the commodities sectors came up with good results during the year. However, the performance of the telecommunication sector was disappointing. Oman's corporate earnings declined 16 percent during the first half of the year to $0.8 billion. The decrease in profit was mainly due to the low profits reported by the banking and telecommunication sectors. On a like-to-like basis, Bahrain's corporate reported a profit of $510 million in the first half of 2011, an increase of 5 percent. The increase in profit was due to the improved results posted by the banking sector in Bahrain.Earnings of Saudi Arabian companies totaled $6.9 billion, an increase of 28 percent YoY and 20 percent QoQ. Saudi Basic Industries Corp. (SABIC), which reported $2.2 billion in Q2 profits, led the growth, which was driven by higher volumes and prices. Al-Rajhi Bank reported a net income of $491 million, up 4 percent. Saudi Telecom's net profit increased 9 percent to $602 million. The increase in net profit is mainly on account of higher sales and lower operating expenses in this quarter.On a like-to-like basis, Bahrain's corporate reported a profit of $270 million in Q2, 2011, an increase of 28 percent YoY and 13 percent QoQ. On like-to-like basis, banks reported an earnings growth of 63 percent on YoY basis. Ahli United Bank grew its earnings over the year by 20 percent to $84 million. Net income of Bahrain Telecom suffered, declining 5 percent YoY, though increasing by 22 percent on a QoQ basis.