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Gulf banks’ long-term outlook remains positive 

April 28, 2016

Times of Oman

Banks in the region fared well in 2015 and the outlook remains relatively positive given the expectation of continued government support for the sector and committed infrastructure investment, according to a KPMG report.

Despite the impact of margin compression caused by an increase in the cost of funds and greater competition for assets, both profitability and assets rose across the region by 6.8 per cent and 6.3 per cent respectively on simple average, said KPMG, a global network of professional firms providing audit, tax and advisory services.

KPMG’s first GCC listed bank results report analyses the published financial statements of 56 leading listed commercial banks across Oman, Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates.

“The banking sector in the region has moved a long way from the days of excess capital and liquidity. Our report reveals that the sector is no longer growing at double-digit growth rates,” said Paul Callaghan, head of Financial Services for KPMG in Oman.

“Banks are experiencing new challenges as a result of the current economic environment, greater regulatory oversight, supervision and stiffer competition. However the sector is still growing, although at a slower pace than previous years,” he added. Read more

 
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