S&P predicts strong third quarter for Gulf banks

Improving asset quality and declining credit losses will add up to healthy third-quarter earnings for the region’s banks, says Standard & Poor’s. With the release of quarterly results coming soon, S&P predicted in a report yesterday that the banks will sustain their strong performance – and should continue to do so into 2016. The ratings agency said in a report yesterday that even though interest rates are low, the reductions in banks’ non-performing assets should offset the contraction in net interest margins. Besides, the many infrastructure projects planned in the Gulf should translate into sustained streams of corporate lending.