AED28.8 billion of profit secured by UAE banks in nine months

Banks operating in the UAE posted profits of AED28.8 billion during the first nine months of 2017, a growth of 8 percent over the corresponding period last year, in yet another testament to the robust solvency profile of the UAE banking system.

This was stated by Mubarak Rashed Al Mansouri, Governor of the UAE Central Bank, on the sidelines of the Middle East Banking Forum which was organised in the UAE capital today where the governor affirmed that the UAE solvency has secured "very good levels in light of sufficient capital buffers, with non-residents' deposits surging to AED188 billion, making up to 12 percent of assets at local banks."

The rebound secured by global oil prices is a powerful enabler for economic recovery, he said, adding that government deposits have grown by an annual 39 percent, rising 19 percent to AED223.6 billion during 2017.

UAE banks exposure to SMEs remains very limited as small-scale enterprises interest rates continue to be as low as 7-20 percent without collaterals, he added.

"The Central Bank is not considering any further mergers involving Emirati banks for the time being," he continued, affirming that the UAE banking system is among the most diversified and competitive across the region.