Wednesday 12 August 2015

Oil decline to ‘adversely affect’ banking sector | GulfNews.com

Oil decline to ‘adversely affect’ banking sector | GulfNews.com:



"After posting positive results in the past year, Islamic banks in the UAE and the rest of the Gulf Cooperation Council (GCC) region are likely to see profits decline in 2015 as oil revenues fall and threaten the growth of regional economies. 




According to a report published on Wednesday by Standard & Poor’s Rating Services, the “gradual weakening in economic conditions” will “adversely” affect the banking industry in the region. Growth of net income and deposits in Gulf-based Islamic banks will slow down, while asset quality is seen to deteriorate. 




Since June last year, global oil prices have been falling and a strong recovery in the near terms seems unlikely. S&P predicts that prices will remain “relatively weak through 2016”, with Brent crude forecast to average $55 per barrel in 2015, $65 in 2016 and about $75 in 2017."



'via Blog this'

No comments:

Post a Comment