fitch outlook for gcc banks stable but risks remain
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Fitch outlook for GCC banks stable, but risks remain

Arab Today, arab today

Arab Today, arab today Fitch outlook for GCC banks stable, but risks remain

Dubai - Arabstoday

The outlook for Gulf and Middle East banks is generally stable in 2012 with asset quality likely to improve in most countries, Fitch Ratings has said in a new report. The rating agency said almost all the region's banks' issuer default ratings (IDR) are on stable outlook, as a result of the probability of sovereign support. "Fitch's view of sovereign creditworthiness in the region has generally remained unchanged despite regional unrest," the report said. "The intrinsic outlook for the banks in the region is also stable, moving to positive in the medium term, which could lead to some recovery in viability ratings," it added. Fitch said asset quality in the GCC is expected to recover, except for the UAE. It believes that problem loans have peaked and expects recoveries and generally lower impairment charges in 2012. Non-GCC countries may however suffer further problems due to the continuing uncertainty and unrest, Fitch added. Within the GCC, Fitch said unrest has particularly affected Bahrain and, to a lesser extent, Oman, although, in both cases, there was "limited impact on the banking system". Fitch said most sovereigns in the region, especially in the GCC, are helping to stimulate their economies through government-sponsored infrastructure projects, taking advantage of their significant government revenue and sovereign wealth funds. It added that because the oil price has remained above $100 per barrel, strong revenues have been generated, comfortably above budget requirements. Non-oil producers in the region will, however, be at a disadvantage, in the absence of economic growth, the Fitch report said. It added that margins and fee income have been under pressure due to low interest rates and subdued volume growth. "However, lower impairment charges and cost control should lead to a gradual improvement in profitability," Fitch said, adding that it expects some loan growth in 2012, as confidence improves and infrastructure projects come on stream. Fitch also expects the trend of banks accessing international debt capital markets - through bonds and sukuk - to continue in 2012, subject to market conditions, as the banks experience renewed growth. The rating agency said any change in the stable outlooks would depend on changes in the sovereign ratings in the region or a change in Fitch's opinion of the sovereigns' propensity to provide support. "As there is a strong culture and track record of sovereign support for banks, and many banks have significant government stakes, it is highly unlikely that Fitch's opinion on sovereign support will change in the foreseeable future," the report noted.

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*

fitch outlook for gcc banks stable but risks remain fitch outlook for gcc banks stable but risks remain

 



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*

fitch outlook for gcc banks stable but risks remain fitch outlook for gcc banks stable but risks remain

 



GMT 19:31 2016 Wednesday ,05 October

Yemeni President receives British Ambassador to Yemen

GMT 14:00 2011 Sunday ,20 November

Raging bulls connect with past

GMT 07:55 2015 Friday ,11 December

Indian women in battle against Mumbai mosque ban

GMT 21:28 2017 Tuesday ,19 September

Arab Coalition destroys sites of insurgents in Najran

GMT 13:48 2017 Monday ,01 May

Omani woman kills man after blackmail attempt

GMT 20:55 2017 Sunday ,14 May

Egypt condemns suicide attack in Saudi Arabia

GMT 09:40 2017 Saturday ,18 February

Pollution reaches "unbearable" level to humanity

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 20:14 2017 Saturday ,12 August

Book gives voice to Vietnam's strangled anger

GMT 11:55 2017 Saturday ,11 March

Leads Sri Lanka to crushing win over Bangladesh
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

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday