GCC Q3 Banks Earnings

The GCC banking sector witnessed a significant decline in Q3 earnings as compared to the previous year. Bottom line numbers were down 9% YoY on the quarter and down 13% YoY for the 9 months. Although the top line earnings showed some remarkable growth that was mainly driven by the Net interest income (growth of 13% YoY for Q3 and 19% YoY for 9M), their affect was dragged down by the increase in provisions. Consequently, 2009 results are expected to show a growth of approximately 15%, not from driven by impressive Q4 earnings but the dismal Q4′08 results that weight down 2008 earnings.