Sunday 23, September 2018 by Kudakwashe

UAE’s bad loan days are behind us, says Mashreq CEO

 

The UAE’s financial institutions are now far more able to withstand any deterioration in assets due to the country’s more diversified economy.

The UAE banking sector is well-positioned for future growth, with the days of bad loans dragging down bank balance sheets ‘behind us’, according to Mashreq Bank’s CEO.

Abdul Aziz Al-Ghurair, the CEO of Mashreq Bank, said that capital adequacy of UAE banking sector is at 17 per cent which is relatively high around the world.

The four of the largest banks in the UAE, First Abu Dhabi Bank, Emirates NBD as well as Abu Dhabi Commercial Bank and Dubai Islamic Bank posted a combined net profit of AED 8 billion dirhams in Q2 2018, a 21 per cent increase compared to the same period last year.

Additionally, in August 2018 Moody’s said that the core profitability of the UAE banks will remain stable over the next 12 to 18 months because the lenders’ interest earnings hold steady at current levels.

The UAE banking system remains steady owing to a buoyant economic operating environment, notwithstanding the recent pick-up in non-performing loans, reported Arab News.

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