Corporate earnings fall 7% in GCC

Corporate earnings in the Gulf Cooperation Council (GCC) countries during the second quarter of 2011 declined seven per cent on a year earlier, a report by the Kuwait Financial Centre "Markaz" said on Tuesday. "Corporate earnings declined due to weak performance by the telecom sector in the region. Nevertheless, banks and commodity companies continued to perform strongly. "The region's continued dominance as a petrochemical hub, global recovery, and spikes in commodity prices supported the performance of companies across the region," said Markaz. "Aggregate net profits from the commodity sector were $3.4 billion (Dh12.4 billion). Among sectors, banking continued to deliver the highest profits, at $5 billion. Robust demand and access to low-cost funds improved spreads in this quarter," it added.