The agency’s expectations came in the report “Gulf Banking Sector Outlook for 2025: Profitability and Asset Quality Underpin Strong Performance,” although banks may be slightly affected by lower interest rates.
Dr. said. Muhammad Damak, credit analyst atS&P Global“Gulf banks achieve profits and benefit from strong asset quality indicators and their possession of strong capital and sufficient liquidity on their balance sheets.”
“However, an unexpected and severe escalation in geopolitical risks or a significant decline in oil prices could negatively impact the creditworthiness of banks,” he added.
Damak confirmed that, based on S&P Global’s stress test, it appears that… Gulf banks “Able to withstand the flight of foreign and domestic private sector deposits.”
“However, a potential decline in asset quality could negatively impact its profitability under a severe stress scenario,” he added.
