Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Qatari banks lead asset, loan growth in GCC: QNB  Join our daily free Newsletter

MENAFN - The Peninsula - 23/02/2014
No. of Ratings : 0
Add to Mixx!


(MENAFN - The Peninsula) The GCC banking sector grew robustly in 2013, driven by large government-led infrastructure and investment projects, with Qatar leading the pack, QNB Group said in its weekly comment.



Most banks in the GCC have healthy funding profiles, with sound, high-quality assets in recent years. QNB Group expects this to enable them to continue to exhibit healthy credit growth funded by high domestic liquidity. Looking forward, the GCC banking system to grow robustly as major projects are rolled out across the region, driving real GDP growth of 4.6 percent 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 as customer deposits grew by around 11 percent 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 percent in 2013. With the acceleration of investment projects ahead of the 2022 World Cup, these trends are likely to continue going forward. Deposit growth continued at a rapid pace, rising by around 24 percent 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 percent in 2013



In the region's largest banking sector, Saudi Arabia, asset growth of 8.5 percent was achieved in 2013 primarily driven by a 10 percent expansion icredit as the Saudi Arabia 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 of 8.1 percent growth in 2013, primarily from the public sector. Saudi Arabian banks have sustained their profitability, with a return on equity of 14.8 percent 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 percent in 2013. This was driven by strong growth in lending to the government of around 11 percent. Credit to private sector companies and households expanded moderately by around 5 percent. 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 percent in 2013.



Kuwait's banking sector continues to remain moderate, supported by high oil revenues and government spending. The banking sector asset growth was 9 percent in 2013.



The banking system in Oman remained benign in 2013 reflecting stable macroeconomic conditions that have supported low non-performing loans with 2.2 percent in the third quarter of 2013. The asset growth was estimated at 8.2 percent in 2013. Omani banks have maintained solid profitability with a return on equity of 13.1 percent in 2013.



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 way


 


The Peninsula




  MENA News Headlines
 Feb 28 2017 - مصر- لأول مرة.. الآثار تعد أول سجل يضم القطع المنقولة خلال 60 يومًاYoum7
(MENAFN - Youm7) قال الأثرى سعيد حلمى، رئيس قطاع الآثار الإسلامية والقبطية، إن اللجان المعنية بتسجيل وجرد جميع الآثار المنقولة من داخل الآثار الثابتة، تعمل على قدم وساق، حيث سيتم الانتهاء من أول ...

 Feb 28 2017 - KHDA humours Dubai students after heavy rainKhaleej Times
(MENAFN - Khaleej Times) A popular nursery rhyme may have once alluded to the fact that only little girls are made of "sugar, spice and all things nice", but it seems ultra-sweet students in Dubai ...

 Feb 28 2017 - WhatsApp's Status update: 7 steps to deal with itKhaleej Times
(MENAFN - Khaleej Times) Earlier last week, UAE residents were in for a surprise when they updated ...

 Feb 28 2017 - 6 things to consider before landing in Dubai for job huntKhaleej Times
(MENAFN - Khaleej Times) Dubai sees thousands of expats every month who come in to explore the opportunities in the city. Dubai is ranked among the top cities in terms of expat experience. Having ...

 Feb 28 2017 - Kapoors party at wedding in Abu DhabiKhaleej Times
(MENAFN - Khaleej Times) The UAE has always been famous with Bollywood stars. They can often be spotted holidaying and celebrating their special days here. Recently, the whole of the Kapoor ...

 Feb 28 2017 - UAE- Emirati brothers shock scientists with breakthrough inventionKhaleej Times
(MENAFN - Khaleej Times) The team said their invention would help develop better batteries, semi-conductors and better solar power. Abu Dhabi - Two young Emirati brothers and a UAE based American ...

 Feb 28 2017 - Mother's Day Special: Abu Dhabi residents honour their mothersKhaleej Times
(MENAFN - Khaleej Times) Abu Dhabi residents share some of their fondest memories God could not be ...

 Feb 28 2017 - UAE- Mother's Day Special: Mums deserve appreciation every day of the yearKhaleej Times
(MENAFN - Khaleej Times) The sacrifices and unconditional love of a mother is often understated ...

 Feb 28 2017 - UAE- Making a difference through music educationKhaleej Times
(MENAFN - Khaleej Times) Angie owes her renewed passion for music to Teacher Rose at Cadenza Music Institute LLC, who mentors students like a mother





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

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