The idea of undergoing the procedure was 'mentally and emotionally draining', the longtime Abu Dhabi resident said, but doctors eased her worries
The UAE banking sector is expected to remain less volatile in 2021 compared to last year, but banks might witness the deterioration of their asset quality after the completion of the Central Bank of the UAE’s deferral program in June 2021, according to Alvarez & Marsal.
Aggregate net profit of the top 10 UAE banks declined by 38.3 per cent year on year, on the back of lower operating income and increased provisions, A&M said in its UAE Banking Pulse report.
Net interest income (NII) decreased two per cent year on year, as system-wide rates decreased substantially after the Central Bank of the UAE slashed rates to counter the effects of the Covid-19 pandemic. However, NIM improved as banks were able to reduce their funding costs further.
The report noted that the UAE banking sector showed signs of instability due to the low-interest environment and sluggish economic conditions, which weighed on overall profitability and return metrics.
Operating efficiency (C/I ratio) also deteriorated, as operating income decreased at a higher rate compared to operating expenses. Despite a challenging business environment, the aggregate capital adequacy ratio of the UAE banks remained robust at 17.6 per cent at the end of December 2020, compared to 17.3 per cent at the end of December 2019.
Aggregate net profit of these banks declined by 38.3 per cent YoY, on the back of lower operating income and increased provisions. Thus, profitability ratios declined.
Total loan loss provisions increased by 79 per cent YoY to Dh28.1 billion, as challenging economic environment and exposure of banks on several high-profile publicly disclosed cases resulted in higher impairments. Cost of risk increased sharply by 69 bps YoY to 1.71 per cent. The coverage ratio also declined to 91.9 per cent from 97 per cent a year ago. The aggregate NPL ratio increased to 6.1 per cent at the end of 2020 from 4.6 per cent at the end of 2019.
According to KPMG, during 2020 the net profit of the top 10 banks in the UAE dropped by 41 per cent on average compared with 2019 and this calls for greater innovations.
Global ratings agency S&P recently reported that the Covid-19 pandemic, lower oil prices, and continued pressure on the real estate sector have increased risks for UAE banks but banking authorities' response to the crisis reporting requirements have reinforced oversight and transparency.
The ratings agency expects rated UAE banks' asset-quality indicators to deteriorate further once regulatory forbearance measures are lifted, although some will be protected by their strong capitalization and earning capacity. “Although forbearance measures could be extended from their current mid-year 2021 expiry date, we expect their removal to be gradual and managed. Despite this support, banks with a structural orientation to sectors where prospects remain weakest are expected to book further significant credit losses,” S&P said.
— issacjohn@khaleejtimes.com
The idea of undergoing the procedure was 'mentally and emotionally draining', the longtime Abu Dhabi resident said, but doctors eased her worries
The ruins in the middle of Pantabangan Dam in Nueva Ecija province are a tourist draw, even as the region swelters in extreme heat
This covers traffic violations incurred until 2023
Friday's polling will be held for 88 of the total 543 seats in the lower house or Lok Sabha of Parliament with 160 million people eligible to vote
The bank’s liquidity profile remains strong as evidenced by an advances to stable resources ratio of 76% and an eligible liquid asset ratio of 16%, both comfortably above regulatory thresholds
Binghatti Hills is set to become the most expansive development within the community
Temperature will reach up to 36ºC and 33ºC in Abu Dhabi and Dubai, respectively
Facing the reality of such a health challenge at the age of 32 was unimaginable for her