Just in:
Galaxy AI Elevates On‑Device Intelligence with Privacy at Core // Nvidia is the dream stock of our lifetime! // UAE Hits Milestone with EU Delisting From High‑Risk Financial Watchlist // BoE charts new wholesale terrain for stablecoins and tokenised assets // “Eternal City” Pompeii Exhibition Opens in Hunan, Marking New Sino-Italian Cultural Exchange // Nigeria’s Coastal Highway Passes $747 m Funding Milestone // CGTN: Beauty in diversity: How wisdom at Nishan Forum inspires global modernization // Celebratory 911 Club Coupe Marks Half-Century Porsche Partnership // Stonepeak Secures Strategic Co-Control of IFCO Stake // Tokyo Real Estate Set for $75 Million Blockchain Shake‑Up // ICONSIAM Showcases Thai Creativity to the World with “Lost in DOMLAND” — Reinforcing Its Role as a Must-Visit Global Art Destination // Abu Dhabi’s Masdar and Iberdrola Back £5 Billion UK Offshore Wind Venture // Sharjah Elevates Real‑Estate Platform with New Digital Portal // Dong Yuhui’s Fujian Journey: The Sea’s Lesson – 30% Destiny, 70% Determination // Anhui Unveils Teaser for 2025 World Manufacturing Convention, Extending a Global Invitation to Innovate Together // Results of the ixCrypto Index Series Quarterly Review (2025 Q2) & IX Digital Asset Industry Index Series Half Yearly Review (2025 1H) // OPEC+ Eyes Pause in Production Rises After September Surge // Coffee Chains Join Bitcoin Mania with Bold Treasury Moves // ADNOC Gas Signs $400 Million LNG Deal with SEFE // Can India Emerge As The Trusted Leader Of Global South Like Earlier Years? //

GCC banks forecast to remain resilient amid economic slowdown

1485550278 117085241

The weak economic environment will continue to weigh on the financial profiles of banks in GCC countries in 2017 and 2018, according to S&P Global Ratings.

ADVERTISEMENT

In a new report, the ratings agency said it believes the three key risks are a difficult operating environment, a higher cost of risk, and lower liquidity.

However, it added that most GCC banks have built sufficient capital buffers to remain resilient to their weakened operating environment.

“The end of the commodities super-cycle has resulted in a significant decline in the economic prospects of the GCC region, implying lower growth opportunities for its banking systems and deteriorating liquidity,” said S&P global Ratings credit analyst Mohamed Damak.

“The end of the commodities boom has also increased the pressure on GCC banks’ asset quality and profitability indicators.”

He added: “Although we expect to see further weakening in some of these indicators in 2017-2018, we think that GCC banks have built sufficient buffers to make the overall impact on their financial profiles manageable.”

Rated banks in the GCC continued to display good asset quality indicators, profitability, and capitalisation in 2016 by global standards, albeit with signs of deterioration from 2015, S&P said.

It added that over the past year, the agency has taken several negative rating actions on banks in the GCC. Most of these were concentrated in Bahrain, Oman, and Saudi Arabia.

“While we have taken a few negative rating actions in other GCC countries, these were primarily for idiosyncratic reasons. Overall, 31 percent of our rated banks in the GCC have negative outlooks or are on CreditWatch with negative implications,” it added.

Source link


Notice an issue?

Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.


ADVERTISEMENT