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Gulf banks earnings are set to weaken in the next quarters

04 Oct 2015

(MENAFN) Banks in the Gulf Cooperation Council (GCC) reported a good set of earnings in the first half of 2015 thanks in part to declining credit losses, and despite the continued squeeze on interest margins.

However, owing to the knock-on effects of lower oil prices on growth and asset quality, earnings could weaken over the next several quarters, a newly released report showed.

“Gulf banks: after solid first-half results, earnings are set to slide,” according to Standard & Poor’s Ratings Services’ report published based on a sample of 26 rated banks in the GCC.

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