uae banks asset quality on the rise
Last Updated : GMT 14:23:16
Arab Today, arab today
Arab Today, arab today

UAE banks' asset quality on the rise

Arab Today, arab today

Arab Today, arab today UAE banks' asset quality on the rise

Emirates NBD
Abu Dhabi - WAM

The first-half results of UAE banks showed sustained improvement in asset quality, which was evident in the consistent decline in non-performing loans (NPLs), loan loss provisions and significantly improved NPL coverage ratio.

Additionally, the second-quarter results show banks have been fortifying their balance sheets on the liability front, with a strong deposit base for a cost-effective funding base in preparation for a potential US interest rate hike before the end of this year.

Analysts said the sector has seen a greater push to garner time deposits during the quarter as banks locked in liquidity ahead of expected rate hikes towards the second half of this year.

While ENBD's deposits grew by 6 per cent during the first half of 2015, Mashreq and NBF's customer deposits were up 10 per cent and 8.5 per cent respectively.

In addition to improved current and savings account (Casa) funding through a strong deposit base, ENBD has been diligent in raising Dh8.9 billion of term-funding in the first half of the year. Term liabilities now represent 11 per cent of total liabilities and will help provide the bank with a strong cushion to deal with any future uncertainty in the global capital markets for the remainder of 2015.

"We took advantage of favourable market conditions to prudently raise nearly Dh9 billion of term-funding in the first half of 2015. This decision to ‘front load' our term-funding requirements is paying dividend even as we now see increased volatility in the global capital markets from a range of sources,” Surya Subramanian, Group Chief Financial Officer, said.

Balance sheet indicators point to overall asset quality improvement as risk normalisation gains traction in the second half of the year.

Mashreq's NPLs remained stable at Dh2.8 billion in June 2015, leading to a NPLs-to-gross loans ratio of 3.7 per cent at the end of June 2015. Net allowances for impairment for the first half of 2015 were at Dh423.9 million, as compared to Dh555.8 million in the first half of 2014.

Total provisions for loans and advances reached Dh3.7 billion, constituting 138.4 per cent coverage for NPLs as on June 30, 2015.

Abdul Aziz Al Ghurair, CEO of Mashreq, said the UAE economy is strong and stable and provides the right environment for growth.

"Looking to the wider economy, the rest of 2015 looks promising for Mashreq as the region's non-oil sectors continue to grow and expand,” he said.

For the first six months of the year, ENBD's impaired loan ratio improved to 7.4 per cent, from 7.9 per cent at the end of 2014. The impairment charge in the first half of 2015 of Dh1.98 billion is 24 per cent lower than in the corresponding period of 2014 following the ongoing risk normalisation this year.

These provisions, along with a healthy level of write-backs and recoveries, helped boost the coverage ratio to 109.8 per cent.

National Bank of Fujairah's net impairment losses were at Dh86.9 million at the end of the first half of the year, compared to Dh65.1 million in the same period last year. The quality of assets continued to improve as the NPL ratio declined from 4.8 per cent to 3.5 per cent. At the close of the fist half of this year, total provision coverage improved to 146.6 per cent from 118.5 per cent at June 30, 2014.

United Arab Bank's provisions for credit losses in the first six months of 2015 were at Dh134 million. With the current level of provisions, UAB has an NPL coverage ratio of 112 per cent, which represents 2.9 per cent of gross loans.
Source: Gulf News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uae banks asset quality on the rise uae banks asset quality on the rise

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uae banks asset quality on the rise uae banks asset quality on the rise

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Presenter Sherine Ramahi proud of her career

GMT 06:46 2017 Sunday ,19 November

Presenter Sherine Ramahi proud of her career
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday