Quotes: US 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
 Sep 23 2014 - Ankara to keep secret behind hostage releaseArab News
(MENAFN - Arab News) ANKARA: Turkish President Recep Tayyip Erdogan says his government will not reveal details of a covert operation that ensured the release of 49 people held hostage by the Islamic ...

 Sep 23 2014 - Syrian Kurds who have fled to Turkey top 130000Arab News
(MENAFN - Arab News) ANKARA: More than 130000 Syrian Kurds have fled across the border into Turkey escaping an advance by Islamic State jihadists Turkish Deputy Prime Minister Numan Kurtulmus said on ...

 Sep 23 2014 - Saudi- Giordano celebrates National Day with special editionArab News
(MENAFN - Arab News) Showing the national colors with pride Giordano one of the world's major international apparel retailers is launching special limited edition polo shirts and t-shirts to ...

 Sep 23 2014 - Saudi- Rabea Tea makes history with a Guinness World recordArab News
(MENAFN - Arab News) Ahmed Mohamed Saleh Baeshen & Co. succeeded in registering its honorary brand Rabea Tea in the Guinness World Records breaking a new attempt for the largest tea bag in the ...

 Sep 23 2014 - Saudi- GE marks 4th year of operations in DammamArab News
(MENAFN - Arab News) GE is marking the fourth year of operations of the GE Manufacturing Technology Center in Dammam which has emerged as regional service and manufacturing hub and center of ...

 Sep 23 2014 - Saudi- CITC governor visits Mobily in Al-Mashaer areaArab News
(MENAFN - Arab News) Communications and Information Technology Commission (CITC) Gov. Abdullah bin Abdulaziz Al-Darrab inspected the preparations of Mobily for the 1435H Haj season. Nasser Al-Nasser ...

 Sep 23 2014 - Saudi- SpaceX launches 3-D printer other station gearArab News
(MENAFN - Arab News) CAPE CANAVERAL Florida: A SpaceX cargo ship rocketed toward the International Space Station on Sunday carrying the first 3-D printer for astronauts in orbit.In all the unmanned ...

 Sep 23 2014 - Dubai property prices show signs of coolingArab News
(MENAFN - Arab News) DUBAI: Dubai's booming property market is showing signs that it may be cooling off industry data showed after two years of soaring prices that had drawn warnings of possible ...

 Sep 23 2014 - Saudi- Pioneering real estate concepts unveiled at Cityscape GlobalArab News
(MENAFN - Arab News) Dubai Investments (DI) the major investment company listed on the Dubai Financial Market is showcasing its wide array of pioneering sustainable real estate concepts and solutions ...

 Sep 23 2014 - Saudi- NCB to start IPO next monthArab News
(MENAFN - Arab News) JEDDAH: Saudi Arabia's National Commercial Bank will begin its much-anticipated initial share sale next month a statement to the Kingdom's stock market said.The initial public ...

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

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

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
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

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


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help