Islamic Finance

Moody's - UAE banks’ profitability to be resilient amid public-sector loan growth


DIFC - Dubai, February 26, 2020 --

  • The UAE's largest banks will benefit from solid public-sector loan growth this year
  • They have a sizeable portion of relatively resilient foreign exchange and credit card related income

Profitability at the four largest United Arab Emirates banks is set to remain resilient in 2020, as solid public-sector loan growth balances the effects of competition and subdued private-sector credit demand, Moody's Investors Service said in a report published today.

The combined net profit of First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank and Dubai Islamic Bank rose 13% to AED37 billion ($10.1 billion) in 2019. The four banks accounted for 73% of banking assets in the UAE as of December. Excluding ENBD's one-off gain related to the partial disposal of a stake in Network International and fair value gain on retained interest, the four banks' net profit fell 1%.

Continue reading

Free, in under 30 seconds

Join thousands of professionals reading Salaam Gateway — the Global Islamic Economy Gateway.

Joined by 12,000+ Islamic economy professionals
  • 5 free articles every month
  • Weekly Islamic-economy newsletter
  • Save articles to read later

tags:

Banking
Author Profile Image
Press Release