With non-performing loans to increase in the remaining quarters of the year, and loan growth to be subdued, banks in the Middle East will continue to suffer in 2010, and are only likely to recover next year, according to a Credit Suisse analyst.
"All in all what we are saying is that in 2010 margins are going down, loan growth is subdued, NPLs to peak and credit costs are high," said Mohammad Hawa, head of Mena equity strategy and Financials Research, Credit Suisse, Investment Banking, during a media roundtable in Dubai last week."
The prospect for next year is based on improvement in all the indicators that are weighing heavily on the banks' performance this year, he said, adding that some of the region's banks are better placed than others, including their global peers, amidst the recovery process.
No comments:
Post a Comment