Arab Today, arab today gulf banks q1 provisions to fall loan growth muted
Last Updated : GMT 13:20:39
Arab Today, arab today
Arab Today, arab today

Gulf banks Q1 provisions to fall, loan growth muted

Arab Today, arab today

Arab Today, arab today Gulf banks Q1 provisions to fall, loan growth muted

Dubai - Arabstoday

Banks in the Gulf Arab region are expected to show signs of recovery on their balance sheets when they report first-quarter results, though lending is likely to remain muted. The regional banking sector was badly hit by the onset of the global financial crisis at the end of 2008, with lenders in the United Arab Emirates (UAE) hit by the country's battered real estate sector and loose lending policies. The result was tightening lending conditions and rising provisions for bad and doubtful debts, all of which dented profitability. But analysts say banks will book lower provisions in 2011. "I expect lower provisioning levels at Saudi Arabian and UAE banks, largely because the comparisons are good against the heavy provisioning in 2010," said Daniel Broby, chief investment officer at London asset manager Silk Invest. "Unfortunately, the loan books are still not growing, which is the flip side of the story. That said, top-line growth, although muted, will begin to come through." Among UAE banks, Dubai lender Emirates NBD the largest in the emirate by market value, will be of particular interest, with about 12.9 billion dirhams ($3.51 billion) of debt maturing in the next two years. Chief Executive Rick Pudner said in March the bank would set aside money in 2011 to cover bad loans but that the company was also ready to look at opportunities for expansion and partnerships. AE central bank data showed that although general provisions in February totalled a consistent 12.3 billion dirhams, specific provisions for non-performing loans continue to grow, hitting 45.8 billion dirhams in February, up from 44.3 billion dirhams in December. "Banks' Q1 will mainly depend on provisions, and the expectations are of lower provisions than 2010 which should give them better results," said Marwan Shurrab, head trader at Gulfmena Alternative Investments. "Expectations are of higher income and better debt to equity ratios." Saudi banks are likely to continue the rally of the fourth quarter. Central Bank Governor Muhammad al-Jasser said in January that lenders had taken enough measures against bad loans and lending would accelerate this year Most Saudi banks exceeded analysts' average net profit forecasts in the last quarter, among them HSBC affiliate SABB 1060.SE and Banque Saudi Fransi 1050.SE, part-owned by France's Calyon. Similarly, Qatar's banking sector -- which proved to be one of the most resilient in the region, helped by direct government support measures -- will be boosted by spending plans in the region's fastest-growing economy. "Based on a continuation of strong growth in the Qatari economy, the outlook for Qatari banks remains positive," said a sector note by Arqaam Capital. "The key drivers of earnings growth are increased volumes and asset-quality improvements." Qatar National Bank, the first regional bank to report quarterly earnings, posted a 34.8 percent jump in first-quarter profit on Wednesday on strong loan growth and a jump in fees and interest income.  

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 gulf banks q1 provisions to fall loan growth muted Arab Today, arab today gulf banks q1 provisions to fall loan growth muted

 



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 gulf banks q1 provisions to fall loan growth muted Arab Today, arab today gulf banks q1 provisions to fall loan growth muted

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Ryanair's O'Leary: Could ground more planes

GMT 06:49 2017 Friday ,22 September

Ryanair's O'Leary: Could ground more planes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Huthis stage defiant rally 3 years

GMT 05:29 2017 Friday ,22 September

Huthis stage defiant rally 3 years
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Youssra prepares for launching her  program

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
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