Standard & Poor's Credit Rating Agency gave in its report on the World Banks Outlook for 2019, a stable outlook for Gulf banks next year, in the absence of any expected geopolitical shocks, and warned that the recent drop in oil prices may adversely affect the work of those banks, indicating that the average rating Gulf banks is BBB+.
According to the same source, the growth of bank loans in the Gulf will stabilize at 5% in 2019, coinciding with the overall economic growth in the region as a result of the strength of public investment, while the agency predicted stability of profits of Gulf banks with a return on assets by about 1.6%, and net interest margin of 3% in 2018, taking advantage of high interest rates and the strength of non-interest bearing deposits.
Standard & Poor's warned that the foreign operations of some Gulf banks may face risks, announcing that three quarters of the 24 Gulf banks granted by the classification have a stable vision.
Source: (Economic Bulletin website, Edited)
