Banks are steeling themselves for a difficult few weeks, with changes in Central Bank regulations expected to expose the full extent of troubles with bad loans.
Across the region, lenders including Samba Financial Group, Al Rajhi Bank, Doha Bank and National Bank of Bahrain are expected to report earnings for the final three months of last year before the end of the week. UAE banks will soon follow, with the Abu Dhabi Commercial Bank (ADCB) and First Gulf Bank due to report full-year earnings on January 26, and National Bank of Abu Dhabi is expected to follow by February 1. Emirates NBD is due to report on February 10, although some banks could start to provide early earnings estimates from this week.
Sofia el Boury, a banking analyst at Shuaa Capital, said the results for the quarter would be likely to result in a great deal of adjustment for banks, as the true extent of their exposure to bad debts became apparent.
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