Al Hilal advances to AFC Champions League knockout stage despite 1-1 draw with Al Sadd    Finance minister: All Vision 2030 projects have sustainable funding that won't affect public finances    Crown Prince announces medium-term debt strategy to diversify funding sources "A resilient economy capable of overcoming challenges reflects progress towards achieving Vision 2030 goals"    'No excuses' for Israel to not accept ceasefire deal, EU foreign policy chief says    Alkhorayef highlights role of National Initiative for Global Supply Chains in boosting Saudi economy    Saudi Arabia signs investment deals worth SR35bn with foreign firms to strengthen global supply chains    Saudi Arabia unveils updates on Expo 2030 Riyadh master plan at 175th BIE General Assembly Riyadh Expo Development Company established to oversee strategic planning, operations, and legacy development    Riyadh Season draws 8 million visitors in 6 weeks    Saudi FM attends Quadripartite meeting on Sudan in Italy    Gangsters block aid distribution in south Gaza    Russian deserter reveals war secrets of guarding nuclear base    Georgia's new parliament opens first session amid mass protests and boycott    Best-selling novelist Barbara Taylor Bradford dies    Cristiano Ronaldo's double powers Al Nassr to 3-1 win over Al Gharafa in AFC Champions League    Al Ahli edges Al Ain 2-1, bolsters perfect start in AFC Champions League Elite    Al-Falih: 1,238 foreign investors obtain premium residency in Saudi Arabia    Most decorated Australian Olympian McKeon retires    Adele doesn't know when she'll perform again after tearful Vegas goodbye    'Pregnant' for 15 months: Inside the 'miracle' pregnancy scam    Do cigarettes belong in a museum?    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



GCC banks to perform better this year: Study
Published in The Saudi Gazette on 03 - 05 - 2012

nation Gulf Cooperation Council (GCC) banks are forecast to perform better this year because of high public spending and an increase in lending, the National Bank of Kuwait (NBK) said Wednesday.
"For banks in the Gulf Cooperation Council (GCC) countries, 2011 was a better year than the one before. Bank profits continued to improve and assets growth was healthy," the report said said.
"In the current global context, the region's economic growth is relatively good, with governments at various stages of implementing ambitious capital spending plans to boost economic growth and funding is plentiful….however, some regional banks continued to deal with the after-effects of the 2008 global financial crisis, particularly on their asset quality," it said.
The report, citing banks balance sheets, showed asset growth in the region lost steam in 2011 despite higher earnings.
Most banks in the region have recovered from the 2008 global fiscal distress and regional debt default problems but their 2011 income remains below peak levels recorded before the crisis.
"As for 2012, we expect to see the recovery in bank performance continue through the year with the overall trends intact. Project spending will continue to be the key driver for banking activity for all markets," it said.
"Banks' consumer lending will also contribute to an improved performance, fuelled by salary increases and employment. Meanwhile, asset quality issues will remain a problem for many banks in Kuwait and Dubai, though provisioning levels will decline gradually."
Return on equity (ROE) averaged 12.2 percent, just barely higher than its level in 2010 and a far cry from the 19 percent seen in 2007.
"However, the aggregate figures for the region hide a more divided environment. Saudi Arabia, Qatar, Abu Dhabi and Oman have all seen a generally more positive picture…….credit growth was healthy and asset quality issues were largely behind them. In these markets, profitability bounced back and lending grew at a double-digit pace."
Bank performance in Kuwait, Bahrain and Dubai was less upbeat, NBK said, adding that while there were some differences among them and certainly individual bank results varied, the markets generally witnessed poorer credit growth and profits continued to be held back by asset quality issues.
Banks in markets seeing more robust private sector growth and substantial public sector investment saw more rosy 2011.


Clic here to read the story from its source.