* username: rupertbu
“The cleanup of Gulf banks’ loan portfolios has not yet come to an end,” the ratings company said today in an e-mailed report. The ratio of non-performing loans to total loans climbed to 5.4 percent on Sept. 30 from 2.7 percent at the end of 2008, and “these ratios are set to further deteriorate in the next few quarters,” S&P said.
Banks across the Gulf region have suffered after the multi- billion dollar debt restructuring of two Saudi family holding companies, Ahmad Hamad Algosaibi & Brothers Co. and Saad Group. In the final quarter of last year Dubai World, the emirate-held holding company, announced it would delay payments on $26 billion in debt, putting more pressure on bank balance sheets.