GCC banks face earnings shock from low oil, real estate pricing – ZAWYA

GCC banks face earnings shock from low oil, real estate pricing – ZAWYA

The report acknowledges a high degree of uncertainty about the rate of spread and peak of the Covid-19 outbreak. The GCC conventional and Islamic banks will see significantly reduced revenue and credit growth in 2020 mainly due to the sharp decline in oil prices, accelerated real-estate price corrections in some markets and drop in vital nonoil economic sectors, said a report.. As the situation evolves, we will update our assumptions and estimates " stated the advisory firm in its report.. The sharp decline in oil prices, accelerated real-estate price corrections in some markets, and drop in vital nonoil economic sectors will pressure banks' earnings, it added.. Although growth rates last year were almost the same as 2018, GCC conventional banks saw faster increases than Islamic banks..