UAE banks should be a prime beneficiary of MSCI upgrade | The National:
"Shares of UAE banks, already poised to outperform the broader market this year as profits improve on lower provisioning for bad loans, will get an extra boost from the inclusion next month of the country in the MSCI Emerging Markets Index.
Many banks in the country had benefited last year from a growth spurt in the economy that encouraged corporations and individuals to take out loans to expand their businesses and buy homes and cars. And as cash flows improved, more businesses and consumers were able to pay existing debt, lowering the amount that banks had to put aside for write offs. As a result, a great number of banks, including First Gulf Bank and Noor Bank, reported record profits. These earnings are likely to continue to improve this year."
'via Blog this'
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