Net earnings by GCC lenders drop 24% in Q3
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Net earnings by GCC lenders drop 24% in Q3

Net earnings by GCC lenders drop 24% in Q3

Global Investment House has said GCC banks have seen their net earnings decline by 24% year-on-year to $3bn in the third quarter, despite recording a growth of 6% year-on-year in net interest income, and 21% increase in non-interest income primarily due to increases in provisions and costs, Saudi Gazette has reported. Total provisions of the banks increased 17% in the third quarter to $1.8bn due to a 65% increase in Kuwait's provisions and a 62% increase in Saudi Arabia's provisions. UAE banks' provision-to-income ratio stood at 26%, compared with the 16% for Saudi banks, 30% for Kuwait banks, 6% for Oman banks, and 8% for Qatar banks, the report said. "Although UAE banks witnessed a decrease in provisions, the current levels of provisions are higher than those of other GCC countries and remain a cause for concern," Global said in its 'Banking Sector' quarterly report.

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