Abu Dhabi – Mubasher: UAE national banks closed 17 branches during the first nine months of the fiscal year 2016, according to a report recently issued by the Central Bank of UAE.

Economic analyst Ali Al-Obaid attributed this trend to banks' attempt to trim their operational costs and to more depend on smart banking services that cover 70% of operations now.

"Banks tend to shut down branches for which clients have little demand. Therefore, branch closures are more effective as their operations do not cover the cost of rents, operations, monthly salaries, and other expenses", said the analyst.

According to the reports, national banks cut the number of their branches to 857 branches by the end of September 2016, compared with 874 ones by the end of September 2015.