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%.
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