S & P expected that most Islamic and conventional Gulf banks will achieve profits during the current year, despite the repercussions of the Corona pandemic.
According to Arabia Net, the agency said in a report released on Monday: that the profits of the banks will be negatively affected by the current conditions, but that most of the banks will make profits.
She added that the rate of financing will be limited, and banks will focus on maintaining indicators of the quality of their assets from a high level, compared to the expansion in granting new funds in light of the current crisis.
She noted that the growth in deposits was strong in 2019, but she believes that the risks are concentrated in that the deposits are focused on government companies and government-affiliated companies, which represent about 10 to 35% of the total deposits in Gulf banks, which may force these companies to withdraw Part of the deposits to provide for their needs. The second type of risk relates to the impact of the Corona virus on the size of employment in the country, and their withdrawal of deposits from banks, indicating that this matter will appear after controlling the epidemic.
However, the agency confirms that Gulf banks have high liquidity indicators.
