Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

QNB Group: Qatari Banks Lead Asset And Loan Growth in GCC  Join our daily free Newsletter

MENAFN - Qatar News Agency - 23/02/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Qatar News Agency) The GCC banking sector grew robustly in 2013, driven by large government-led infrastructure and investment projects, with Qatar leading the pack. Most banks in the GCC have healthy funding profiles, with sound, high-quality assets in recent years. QNB Group in its weekly comment expects this to enable them to continue to exhibit healthy credit growth funded by high domestic liquidity. Looking forward, QNB Group expects the GCC banking system to grow robustly as major projects are rolled out across the region, driving real GDP growth of 4.6% this year. The GCC's traditional strengths of strong fiscal positions and persistent current-account surpluses are likely to support the banking sector. GCC banks have adequate liquidity buffers based on the highly liquid local deposit base (customer deposits grew by around 11% in 2013). In Qatar, higher lending associated with large infrastructure projects, a low cost of funding and foreign acquisitions have all supported banks' growth. Loan growth in Qatar was 23% in 2013. With the acceleration of investment projects ahead of the 2022 FIFA World Cup, these trends are likely to continue going forward. Meanwhile, deposit growth continued at a rapid pace, rising by around 24% in 2013, with the public sector being the key driver for overall gains, reflecting the large fiscal surplus. Higher lending, a low cost base and low provisioning requirements have all supported the banks' overall profitability, with a return on equity of 16.0% in 2013



In the region's largest banking sector, Saudi Arabia, asset growth of 8.5% was achieved in 2013 primarily driven by a 10.0% expansion in credit as the Kingdom rolled out some major transport infrastructure projects and as trade-related demand grew. The banking system in Saudi Arabia has a solid and growing deposit base (8.1% growth in 2013), primarily from the public sector. As a result of the benign operating environment, asset quality, measured by non-performing loans (NPLs) declined to 1.6% in the first half of 2013. Saudi Arabian banks have sustained their profitability, with a return on equity of 14.8% in 2013, owing to a prevalence of low-cost funding and strong operational efficiency. The next largest banking sector, the UAE, achieved asset growth of 8.5% in 2013. This was driven by strong growth in lending to the government (around 11%). Credit to private sector companies and households expanded moderately (5%). However, lending to the real estate sector was flat as the government introduced macro-prudential lending limits to help prevent overexposure to the real estate market, particularly in Dubai where property prices rose 26% in 2013. Overall improvements in asset quality with NPLs of 9.4% witnessed in the first half of 2013 drove down loan-loss provisions which in turn have supported UAE banks' return on equity of 12.6% last yea



Kuwait's banking sector continues to remain moderate, supported by high oil revenues and government spending. The banking system continues to remain heavily deposit funded and benefits from access to government related deposits. As a result, banking sector asset growth was 9.0% in 2013. Moderate credit growth and margin pressures have constrained revenue growth and thus return on equity fell to 5.6% in 2013 from 6.6% in 2012. Kuwaiti banks have made considerable progress in rehabilitating their loan books following the 2008-09 crisis, and this along with the healthy operating environment, has meant that NPLs fell to 3.9% in the third quarter of last year. The banking system in Oman remained benign in 2013 reflecting stable macroeconomic conditions that have supported low NPLs (2.2% in the third quarter of 2013), healthy levels of capitalization and a stable deposit funding base. Prospects for Omani asset growth have been sound on the back of the increase in government spending on infrastructure asset growth was an estimated 8.2% in 2013. In addition, Omani banks have maintained solid profitability with a return on equity of 13.1% in 2013. Furthermore, high government spending has boosted bank lending in recent years (up 5.2% in 2013), and a favorable economic environment will continue to support bank credit conditions and create lending opportunities going forward. Looking ahead, the GCC's positive economic growth outlook, supported by high hydrocarbon prices and strong government spending, is expected to support the continued expansion of the regional banking sector, with Qatar leading the wa

 


Qatar News Agency




  MENA News Headlines
 May 28 2015 - HH the Emir Meets Indonesian FMQatar News Agency
(MENAFN - QNA) HH the Emir Sheikh Tamim bin Hamad Al-Thani on Thursday met at his Emiri Diwan office with Foreign Minister of the Republic of Indonesia, Retno Marsudi, and the delegation currently ...

 May 28 2015 - Yemeni President Meets U.S. Assistant Secretary of StateQatar News Agency
(MENAFN - QNA) Yemeni President Abd-Rabbu Mansour Hadi met on Thursday with Anne Patterson, U.S. assistant secretary of state for near eastern affairs. They reviewed the efforts of the Yemeni ...

 May 28 2015 - Kuwait's Foreign Minister Meets Libyan CounterpartQatar News Agency
(MENAFN - QNA) Kuwait's First Deputy Prime Minister and Foreign Minister Sheikh Sabah Khaled Al-Hamad Al-Sabah met here Thursday with the Libyan Foreign Minister Mohammed Aldayri on the sideline of ...

 May 28 2015 - Multiplex, CricOn register big victories in Power Horse T20 cricket tournamentKhaleej Times
(MENAFN - Khaleej Times) Multiplex and CricOn put on dominating performances to register comfortable victories in the Power Horse T20 cricket tournament at the Fair Ground Oval in Dubai Men's College ...

 May 28 2015 - Abdel Gawad and Evans win Sharm El-Sheikh International ChampionshipDaily News Egypt
(MENAFN - Daily News Egypt) Karim Abdel Gawad and Ali Farag met in an all-Egyptian final, with Abdel Gawad winning the Sharm El-Sheikh Squash International Championship title. Abdel Gawad won against ...

 May 28 2015 - Dubai to ease licensing for 'weekend doctors'Khaleej Times
(MENAFN - Khaleej Times) Dubai health authorities have eased licensing regulations for visiting professionals so as to give patients access to international and highly qualified, 'weekend ...

 May 28 2015 - Ramadan 2015 at Sequoia: Bringing out the beauty of nature, with an exotic feelDaily News Egypt
(MENAFN - Daily News Egypt) Over the years, Sequoia has been known for being one of the most popular restaurants in Cairo, bringing you the best of Mediterranean and oriental cuisine. Every year, ...

 May 28 2015 - Fashion designs need protection: ShayDaily News Egypt
(MENAFN - Daily News Egypt) Shay is one of the fashion designers who was introduced to the world of fashion through the Italian Fashion Academy. She studied design and marketing, and afterwards went ...

 May 28 2015 - Cairo Airport's Terminal 2 soft opening expected in NovemberDaily News Egypt
(MENAFN - Daily News Egypt) Cairo International Airport's Terminal 2 will witness its soft opening in November this year, with the official opening expected in March 2016.The soft opening comes as ...

 May 28 2015 - Egypt targets 20 million tourists by 2020: Tourism MinisterDaily News Egypt
(MENAFN - Daily News Egypt) Tourism Minister Khaled Rami presented his ministry's strategy to reach 20 million tourist by 2020, according to a statement after a press conference held by the minister ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help