According to CBUAE figures, the cumulative balance of credit granted by national banks to the sector on an annual basis increased by 2.14%.
Credit facilities provided by national banks to the corporate and industrial sector increased by 1.92% (13.1 billion Dhs) in the first four months of 2022 to reach 696.7 billion Dhs against 683.6 billion Dhs during the corresponding period in 2021, according to the figures revealed. by the Central Bank of the United Arab Emirates (CBUAE).
According to figures from the apex bank, the cumulative balance of loans granted by national banks to the sector on an annual basis increased by 2.14% or 14.6 billion Dhs.
The value of credit facilities granted by national banks to the sector represented 89.1% of the gross cumulative credit balance, which reached 782.5 billion Dhs at the end of last April, while the share of foreign banks amounted to 10.9% or 85 Dhs. 8 billion.
Credit facilities extended by UAE national banks to the two sectors amount to Dhs 13 billion, which represents 79% of the total facilities provided by all UAE-based banks to the two sectors during the first quarter. This represents 55 percent of total lending by UAE banks to all commercial activities carried out by the private sector during the reporting period.
National banks in the UAE provided Dhs 713 billion to the two sectors in the first quarter, compared to Dhs 700 billion in the last quarter of 2019.
ABG posts income of $252 million: Arab Bank Group reported net profit after tax for the first half of 2022 of $252 million, compared to $182.4 million for the same period last year, recording an increase by 38%.
The Group’s loan book grew 6% to $35.7 billion as of June 30, 2022 from $33.8 billion for the same period last year, while customer deposits grew 2% to reach 47.1 billion dollars against 46 billion dollars for the same period last year. The increase in loans and deposits in most areas of operations is in line with the Bank’s sustainable growth strategy to expand and diversify its customer base, loans and deposit base. The Group maintained its strong capital base with total equity of $10.2 billion.
Sabih Masri, Chairman of the Board, said the performance in the first half of the year reflects the Group’s prudent operating policies and its solid financial position, despite a difficult economic environment.
Ms. Randa Sadik, Chief Executive Officer, said the Group’s underlying performance continues on its growth trajectory with net operating income growth of 6% across all business lines of the Bank, driven by an improvement in both net interest income and commission income of 4% and 17%, respectively, and the Group’s underlying operating expenses well under control.
Ms. Sadik also added that the group’s liquidity remains strong, with the loan-to-deposit ratio standing at 75.9% and asset quality remaining high, with credit provisions held on non-performing loans continuing to exceed 100%. Arab Bank Group maintains a strong capital base which is mainly composed of common shares with a capital adequacy ratio of 16.4%.
Ms. Sadik said that Arab Bank has continued its journey of digital transformation, which is a major pillar of the Bank’s strategy, offering a full range of banking solutions and services that meet the ever-changing banking needs of its customers. The Bank recently released pioneering apps in Jordan, including the “Arabi Next” app; targeting of Small and Medium Enterprises and “Arabi Junior” application; targeting children and adolescents. This is in addition to Arab Bank’s continuous updates on “Reflect”, the first Neobank in Jordan, as part of the Bank’s ongoing efforts to deploy the latest digital banking technologies.
Masri concluded by highlighting the strength of Arab Bank’s franchise and its diverse business model that enables it to effectively overcome challenges and achieve sustainable results.
Arab Bank recently published, for the 12th consecutive year, its annual sustainability report for the year 2021. This is part of Arab Bank’s continued commitment to integrating sustainability into its operations from a strategic manner that complements the Bank’s ongoing efforts to support the achievement of community development.
Arab Bank has been named “Best Bank in the Middle East 2022” for the seventh consecutive year by the New York-based international publication “Global Finance”.
Last Thursday, First Abu Dhabi Bank (FAB) announced that the group’s net profit amounted to 8 billion dirhams in the first six months of 2022, an increase of 50% compared to the same period. last year.
In a statement, the bank said total revenue was Dhs 12.5 billion, up 31% year-on-year (YoY), including a net gain of Dhs 3.1 billion on the sale of majority stake in Magnati.
Hana Al Rostamani, Managing Director of FAB Group, said: “FAB delivered a strong performance in the first six months of 2022 with a 50% increase in net profit compared to the same period in 2021. Despite the increased volatility of the global market, our core businesses maintained strong growth momentum reflecting healthy pipeline execution across our diverse franchise and our continued strategic focus on deepening customer relationships.