Economics
Gulf Banks Feel the Pain as Investors Wonder What Will Come Next
- Lenders from Saudi Arabia to U.A.E. posted lower earnings
- Price-to-book for index of Saudi lenders drops 25% in a year
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Banks from Saudi Arabia to Dubai are feeling the pain of the Middle East’s slowdown.
Many of the region’s largest banks missed analysts’ earnings estimates in the third quarter as lenders provisioned for higher bad loans and funding costs increased. National Commercial Bank, Saudi Arabia’s largest lender, said profit fell 1.5 percent to 1.96 billion riyals after impairment charges increased. Emirates NBD PJSC, the United Arab Emirates’ biggest bank, posted a profit of 1.66 billion dirhams, missing analyst estimates for earnings of 1.83 billion, after provisions increased at its Islamic unit.