• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 11 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Does Toyota Know Something That We Don’t?
  • 6 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 2 days World could get rid of Putin and Russia but nobody is bold enough
  • 1 day America should go after China but it should be done in a wise way.
  • 5 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 4 days China is using Chinese Names of Cities on their Border with Russia.
  • 5 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 4 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 10 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
  • 5 days Putin and Xi Bet on the Global South
  • 5 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 6 days United States LNG Exports Reach Third Place
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Qatari Commercial Bank Says The Worst Oil Shock Is Over

The worst of the shock to oil markets and economies stemming from the COVID-19 pandemic is already behind us, the top executive of one of the largest commercial banks in Qatar told Bloomberg TV in an interview on Wednesday as the Middle East countries are reeling from the double shock of the coronavirus and oil price collapse on their economies.  

“We look forward to reset the button as and when the world reaches normalcy,” Raghavan Seetharaman, chief executive officer at Doha Bank QPSC, told Bloomberg TV.                  

At the end of last month, Amin Nasser, president and CEO of the world’s biggest oil company, Saudi Aramco, said that the worst in the oil market was over, adding that he as “very optimistic” for the second half of this year. 

Despite the optimism that things can’t be as bad as they were back in April, the banks in the Middle East have felt the double whammy of COVID-19 and low oil prices on their portfolios and provisions to cover bad loans.

First Abu Dhabi Bank took a net impairment charge of US$288 million (1.06 billion UAE dirhams) in the second quarter, more than double the provisions for bad loans for the same period of 2019, while Emirates NBD more than tripled its net impairment loss on financial assets in the first half of 2020 compared to H1 2019.

In Qatar, despite timely support from the central bank, the credit profiles of Qatari banks are likely to weaken in 2020 as a result of the coronavirus crisis and lower oil prices, Fitch Ratings said earlier this week.

The crash in oil prices has already sparked a wave of mergers and acquisitions in the banking sector across the Middle East, with lenders in Saudi Arabia, Qatar, the UAE, Kuwait, and Oman considering tie-ups.

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News