GCC corporate earnings: Lower revenue, higher provisions to hit most sectors - experts | ZAWYA MENA Edition

GCC corporate earnings: Lower revenue, higher provisions to hit most sectors - experts | ZAWYA MENA Edition:

GCC corporate earnings will take a hit in Q2 2020 as lockdown measures to stem the spread of the coronavirus hurt business activity during the quarter.

“Given the breadth and depth of the restrictions we saw in April and May, we expect GCC Q2 earnings to reflect the full impact of the lockdown,” Salah Shamma, Head of Investment, MENA, Franklin Templeton Emerging Markets Equity told Zawya.

“We anticipate most sectors to announce a material drop in quarterly earnings on the back of lower revenue and higher provisions,” Shamma said.

GCC net profits declined by more than 25 percent in Q1 2020. With companies given exemption to file quarterly earnings, many chose not to publish their results, KAMCO Invest said in a recent report.