DOHA: Qatar-based banks reported the biggest contraction in interest spreads, down 12bps, in the region during 4Q12. The contraction is due to competitive pricing pressure among the Banks in Qatar.
Loan book growth remained strong across the markets, with Qatar witnessing the highest increase at 26.5 percent YoY, followed by Kuwait (up 19.2 percent) and Saudi Arabia (up 15 percent). The growth in loan book for Qatar-based banks was due to a significant increase in public sector spending. The Global Investment House research note said the net earnings of GCC banks, which are under their coverage, increased 14.9 percent YoY in 4Q12, benefiting from higher revenue and lower provisioning expense. Profit across GCC markets rose, with UAE-based banks witnessing the strongest growth, up 43.1 percent YoY, followed by Kuwait, up 25.4 percent. Profitability of banks in Saudi Arabia and Qatar increased 7.5 percent and 2.1 percent YoY, respectively. The Peninsula
