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938 billion dollars of assets of Gulf banks in 2012
Amid doubts about its effectiveness in the financing of projects the region
National Commercial Bank is the largest Gulf banks
London: Musa Mehdi
assets rose Gulf banks by the end of 2012 to $ 938.3 billion, while profits rose by 14.9 per cent, according to the report issued yesterday by the «Global» Kuwaiti Research. According to a report by Global exports all of Abu Dhabi Commercial Bank and Banque Saudi Fransi and Saudi British Bank list of banks that have achieved the highest profits in the region, while profits fell Qatar Islamic Bank due to higher provisions that monitoring to cover the losses.
The company said «Global» Kuwaiti Research in its report that net profit for the GCC banks grew on average at a rate of 14.9 per cent benefiting from the positive economic climate in the GCC. She said in a report that Gulf banks benefited in this strong growth in net profit from operations and income decline in the volume of allocations during the past year.
Noteworthy that most Gulf banks governor ago during the last year of allocations to cover the losses. The report pointed out that the growth of profitability reached its highest level in UAE banks, with an average profit growth 43.1 per cent, followed by Kuwaiti banks growth rate on average 25.4 per cent, then Saudi Arabia at a rate of 7.5 per cent, then Qatari banks with a growth rate of 2.1 percent. The report said that the GCC banks assets or GCC banks grew during the past year at a rate of 12.7 per cent to $ 938.3 billion. The Qatari banks saw the highest growth rate in earnings, reaching its year-end assets 174.8 billion dollars, followed by the Kuwaiti banks increased assets by 15.3 per cent, then the Saudi banks increased by 12.2 per cent, then the UAE banks that have achieved the lowest level in increasing the volume of assets.
Gulf banks achieved, according to the report, strong growth in the loan portfolio amounted to 14.0 per cent during the past year. But despite the strong growth in lending portfolios, the proportion of the profits realized were slim as it did not exceed an average of 2.5 per cent. It is noted that most of the profits made by Gulf banks in the past year were in the «personal banking, and services sector individuals and fees related to these services, and was not in the project-related loans. From this standpoint analysts questioned the effectiveness of these banks in financing infrastructure projects and projects to diversify the sources of income in the Gulf region away from oil, which is one of the most important pillars of economic planning in the Gulf region during the past years. The Saudi American Bank said 'Samba' in this regard «Although the Saudi banks with strong balance sheets, they tend to keep in granting loans to projects. The predicted 'Samba' in his report two days ago that is funded projects in the Gulf region through the issuance of bonds and instruments in the coming years. He said that only attractive projects that will receive bank Baltmwilat. The Saudi American Bank in this regard to the financing gap left by European banks, led by French banks, which withdrew from the region due to financial troubles experienced over the past years, as well as for reasons of their need for capital to meet the new requirements contained in the laws of Basel III.
It is noted that the global investment banks that were stationed in Dubai was profitable high fees mergers and acquisitions, as well as from fees versions. But over the past years and because of the circumstances experienced by the emirate of Dubai's debt and recession, and reflected on the economy of the UAE in general, said the proportion of earnings that were achieved by these banks, and thus withdrew a number of them, while reducing some of the size and presence in the Gulf.
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