By: Mahmoud Gamal
Dubai – Mubasher: The full-year 2018 financial results of banks operating in the UAE are expected to report historic records, supported by the improvement of financing and liquidity as well as raising the interest rate, financial analysts said.
Banks may raise their cash dividends and provisions amid challenges represented in liquidity levels determined by international standards.
Emirates NBD posted net a profit of AED 10 billion, for the first time, for the year ended 31 December 2018.
Profits of the UAE lenders recorded AED 38.2 billion in 2017, with total cash dividends of AED 18 billion.
For the first nine months of 2018, the performance of the UAE listed banks was very good, as profits increased by 14% year-on-year to AED 32.5 billion, head of asset management at MENACORP Tariq Qaqish told Mubasher.
He added that the ongoing hike of interest rates in these banks, which exceeded 2.1%, helped in enhancing net interest margins and profits.
The analyst noted that the improvement in the UAE's economic conditions and assets quality led to an increase in the financial results of the Emirati banks over the previous year.
Providing long-term visas for ten years and raising foreign ownership to 100% were among the financial catalysts that propped up profitability of the UAE’s banks.
Qaqish added that the cancellation of some fees and the bank guarantee , along with reducing fines and fees imposed on companies contributed to raising profits.
As for the UAE banks’ consolidation deals, Abu Dhabi Commercial Bank (ADCB), Union National Bank (UNB) and privately-owned Al Hilal Bank revealed in November that they were about to complete merger talks to create two new lenders.
In 2017, National Bank of Abu Dhabi and First Gulf Bank, the oil-rich emirate’s two largest banks, finalised a merger to form First Abu Dhabi Bank (FAB), the UAE’s biggest bank by assets.
Translated by: Kholoud Mohamed Hussein
