GCC banks improve profits on lower costs and provisions | GulfNews.com

GCC banks improve profits on lower costs and provisions | GulfNews.com:

"The full-year earnings of GCC banks point to improved profits, lower costs and substantial reduction in cost of risks positively impacting their profitability. Positive endowment effect [the effect of higher interest rates on net interest margins (NIMs) as interest-generating assets are larger than interest-bearing liabilities] has also improved the bottomlines of many banks and is expected to continue into 2018 as most GCC countries are expected adjust interest rates in tandem with the Fed rates. In 2017, endowment effects were modest across the region with negative impact in Saudi Arabia. Analysts expect the impact from higher interest rates on margins to improve next year."



'via Blog this'