Arab Today, arab today gcc bank provisions soar 59 buss
Last Updated : GMT 05:41:30
Arab Today, arab today
Arab Today, arab today

GCC bank provisions soar 59% buss

Arab Today, arab today

Arab Today, arab today GCC bank provisions soar 59% buss

Abu Dhabi - Arabstoday

Banks in Gulf oil producers are pushing ahead with a drive to build up loan loss provisions in the wake of the 2008 global fiscal distress and regional debt default problems, with those of key banks soaring by 59 per cent in the fourth quarter over the previous quarter, according to a Kuwaiti bank. Provisions by the 22 banks covered in the report by Global Investment House (GIH) about the banking sector in the six-nation Gulf Cooperation Council (GCC) also jumped by around 51 per cent year-on-year. Saudi Arabia was the only country whose banks recorded a decline in provisions YoY while Kuwait and the UAE accounted for the bulk of Q4 provisions. Kuwait contributed around 60% of the incremental provisions taken by GCC banks, as compared to the previous quarter and a similar figure if compared on YoY basis, GIH said in its 20-page study. Provisions leaped by nearly150% both on YoY and QoQ basis and all banks under coverage saw a sharp rise in provisions. However Kuwait Finance House (KFH) fared the worst and saw its provisions rising 2.5 times over the previous quarter and 118%YoY. “These were the highest quarterly provisions taken by KFH since 4Q08.” The next largest contribution to GCC banking provisions came from UAE, where provisions jumped by 47%YoY and 20%QoQ. “The UAE continued to take high provisions in the wake of Dubai’s debt issue and to meet the general provision guidelines introduced by the central bank.” The report said that while the Abu Dhabi-based First Gulf Bank was the only institution that saw a decline in provisions both on YoY and QoQ basis, Dubai-based ENBD and Union National Bank in Abu Dhabi can be pointed out as the banks that contributed most to the increase in provisions during the quarter. The Qatari banking sector was not immune to excessive provisions during 4Q11 and saw a massive building up during the period led by Qatar National Bank and Qatari Islamic Bank, according to GIH. Turning to earnings, the report said the combined net profits of the 22 banks grew by around eight per cent YoY in the fourth quarter but declined by nearly 13 per cent compared with the third quarter. “This was the second consecutive quarterly slip during the year after the banks reached the highest quarterly profit ever in 2Q11 since 2Q08,” it said. It said Kuwait was the only country that witnessed a decline in profits YoY, with the net income sliding by about 22%YoY. “Qatar saw the highest growth up by a similar figure….on a QoQ basis, all the GCC countries saw a decline in profitability, again with Kuwait exhibiting the highest decline and Qatar, the lowest,” GIH said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gcc bank provisions soar 59 buss Arab Today, arab today gcc bank provisions soar 59 buss

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gcc bank provisions soar 59 buss Arab Today, arab today gcc bank provisions soar 59 buss

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday