Banks in the Gulf Arab region are expected to show signs of recovery on their balance sheets when they report first-quarter results, though lending is likely to remain muted.
The regional banking sector was badly hit by the onset of the global financial crisis at the end of 2008, with lenders in the United Arab Emirates (UAE) hit by the country's battered real estate sector and loose lending policies.
The result was tightening lending conditions and rising provisions for bad and doubtful debts, all of which dented profitability. But analysts say banks will book lower provisions in 2011.
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