GCC BANKS TO SEE SIN­GLE-DIGIT GROWTH IN EARN­INGS

Qatar Today - - BUSINESS > BANK NOTES - BY SINDHU NAIR

Timucin En­gin, Di­rec­tor, Banks, at Stan­dard & Poor's Rat­ings hasn't seen a ma­jor de­cline in credit growth in the re­gion though there are early signs of it. “An im­por­tant driver of credit growth is in­fra­struc­ture spend by the gov­ern­ments. In 2015, we have not seen ma­jor cuts in in­fra­struc­ture spend­ing but 2016 looks un­cer­tain. We also ex­pect banks to be gen­er­ally more se­lec­tive about loans for huge projects, which re­quire long-term fund­ing,”

STAN­DARD & POOR’S PREDICTS DIS­MAL GROWTH IN EARN­INGS FOR BANKS IN THE GCC.

says En­gin.

S&P had forecast 8.5% to 9% credit growth in 2015 and 2016 for the GCC banks, com­pared with 9.8% in 2014, and 10% growth a year ear­lier. As of now, the pre­dic­tion for Qatar banks is a credit growth of 9%.

If the oil price de­cline is to per­sist over a longer pe­riod, the rat­ing agency expects a much stronger im­pact on do­mes­tic credit growth through re­duced gov­ern­ment spend­ing. In­fra­struc­ture spend­ing by

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