Stable outlook for GCC banks as asset quality set to stabilize | GulfNews.com:
"Banks across the GCC are expected to see stabilisation of the financial profiles and performance after two years of significant pressure, according to S&P Global Ratings. While analysts expect to see further easing of liquidity and funding with improvement in asset quality metrics in 2018, there is a likely spike in cost of risk across the board due to factors other than new loan impairments. “We think that GCC banks’ cost of risk will increase in 2018 because of the adoption of IFRS 9 [International Financial Reporting Standards] and the higher amount of restructured and [loans] past due, but not impaired loans sitting on their balance sheets. However, we also think that the general provisions that GCC banks have accumulated over the years will help a smooth transition to the new accounting standard,” said Mohammad Damak, a Credit Analyst at S&P Global Ratings."
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