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| Brief Excerpt: | ...Improving Liquidity in the UAE Banking Sector Should Benefit Profitability Metrics Key Message on 2016: Funding costs increased substantially in 2016 and have lowered performance ratios. Liquidity pressures have eased since peaking in early 2016. Performance: Higher funding costs in 2016 put pressure on all banks' net interest margins and operating profitability metrics, despite many banks successfully repricing their loan books. The main reasons for the increase are UAE banks' high reliance on interest-bearing time deposits (about 50% of deposits) and lower liquidity in the system given lower oil prices. The sector average cost/income ratio was almost flat owing to good cost control. Asset Quality: Asset-quality metrics showed some deterioration in 2016 for the first time in several years, particularly from pressure in the SME sector. Loan impairment charges/loans ratios have been rising as a result and there has also been an increase in restructured loans. Loan-loss reserves are adequate... |
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| Report Type: | |
| Company(ies) | Union National Bank P.J.S.C.
, MashreqBank psc
, Bank of Sharjah P.J.S.C.
, Abu Dhabi Islamic Bank PJSC
, The National Bank of Ras Al Khaimah (P.S.C.).
, First Abu Dhabi Bank PJSC
, Commercial Bank of Dubai PSC
, HSBC Bank Middle East Limited
, Dubai Islamic Bank PJSC
, Abu Dhabi Commercial Bank PJSC
, Emirates NBD Bank PJSC
, Sharjah Islamic Bank PJSC
, Al Hilal Bank P.J.S.C.
, Noor Bank PJSC
, Emirates Islamic Bank PJSC
, Commercial Bank International PSC |
| Ticker(s) | ADCB
, ADIB
, BOS
, CBD
, CBI
, DIB
, EIB
, MASQ
, NBAD
, RAKBANK
, SIB
, UNB |
| Issuer | |
| Format: | | PDF |  |
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