GCC BANKS TO SEE SINGLE-DIGIT GROWTH IN EARNINGS
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.
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