Temperatures will rise gradually throughout the day, the Met department said
weather6 hours ago
Higher net interest income and lower provisions drove profits higher for the four largest banks in the UAE in second-quarter 2018 with profitability likely to remain stable into 2019, said Moody's Investors Service.
"We expect core profitability for the large UAE banks to remain broadly stable over the next 12-18 months, as interest earnings hold steady at current levels, and as the decline in provisioning charges reverses due to softening business confidence," says Nitish Bhojnagarwala, vice-president, senior credit officer at Moody's.
The big four banks - First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank and Dubai Islamic Bank - reported combined net profit of Dh8 billion ($2.2 billion) in Q2 2018, up 21 per cent year on year.
Profitability improvements were mainly driven by a 10 per cent increase in net interest income compared with Q2 2017, as banks repriced loans following a rise in interest rates. The banks also benefited from a 27 per cent year-on-year reduction in loan loss provisions, as they were allowed to take expected future credit losses from their capital, a one-off measure to facilitate IFRS 9 adoption in Q1 2018.
Operating costs rose 3 per cent quarter-on-quarter and 8 per cent year-on-year, mainly reflecting investments in technology to improve operational efficiency. However, the overall cost to income ratio for the four banks was stable at 30 per cent in Q2, and is likely to remain stable at this level over the next 12-18 months as their technology investments begin to yield results. Deposits increased and capital improved modestly during the second quarter of 2018.
- waheedabbas@khaleejtimes.com
Temperatures will rise gradually throughout the day, the Met department said
weather6 hours ago
Arabella was recently recognised with a gold medal at the first edition of the Sheikh Hamdan bin Zayed Environmental Awards
uae7 hours ago
Post the Covid pandemic, the Emirates has emerged as one of the most popular spots for destination weddings
uae7 hours ago
It bears the name 'Dubai' in Arabic and dates back to the 1960s
uae7 hours ago
The quake occurred at 3.03am local time
uae7 hours ago
Debutant and |Dubai amateur Oscar Craig makes the cut on a tough day dominated by warm winds
sports12 hours ago
In a packed leaderboard the tied second place was decided on a card countback with the Emirates Golf Federation 2 Team prevailing
golf13 hours ago
Chief organiser Tony Estanguet says the goal is to organise a 'spectacular but also more responsible Games which will contribute towards a more inclusive society'
sports14 hours ago