Gulf Today, Jul 31, 2022 | Muharram 02, 1444
Banks give Dhs696.7 billion facilities to business and industrial sector
Credit facilities provided by national banks to the business and industrial
sector rose 1.92 per cent (Dhs13.1 billion) in the first four months of 2022 to
Dhs696.7 billion from Dhs683.6 billion in the corresponding period in 2021,
according to figures revealed by the Central Bank of the United Arab Emirates (CBUAE).
According to the apex bank’s figures, the cumulative balance of credit provided
by national banks to the sector on a year-on-year basis grew by 2.14 per cent or
Dhs14.6 billion.
The value of credit facilities extended by national banks to the sector
accounted for 89.1 per cent of the gross accumulative credit balance, which
reached Dhs782.5 billion by the end of last April, while the share of foreign
banks stood at 10.9 percent or Dhs85.8 billion.
The credit facilities extended by the UAE national banks to the two sectors
stand at Dhs13 billion, accounting for 79 percent of total facilities provided
by all UAE-based banks to the two sectors during Q1. This accounts for 55 per
cent of the total loans provided by UAE banks to all business activities
performed by the private sector during the reference period.
The UAE national banks provided Dhs713 billion to the two sectors during Q1 as
compared to Dhs700 billion during last quarter of 2019.
ABG posts $252m income: Arab Bank Group reported a net income after tax for the
first half of 2022 of $252 million as compared to $182.4 million for the same
period last year, recording an increase of 38%.
The Group loan portfolio grew by 6% to reach $35.7 billion as of June 30, 2022
compared to $33.8 billion for the same period last year, while customer deposits
grew by 2% to reach $47.1 billion compared to $46 billion for the same period
last year. The increase in loans and deposits in most areas of operations are in
line with the Bank’s sustainable growth strategy to expand and diversify its
clients, loans and deposit base. The Group maintained its strong capital base
with a total equity of $10.2 billion.
Sabih Masri, Chairman of the Board of Directors, stated that the performance in
the first half of the year reflects the Group’s prudent operating policies and
strong financial position, despite challenging economic environment.
Ms Randa Sadik, Chief Executive Officer, stated that the underlying performance
of the Group continues on its growth path with 6% growth in net operating income
across the Bank’s lines of business driven by improvement in both net interest
income and commission income by 4% and 17%, respectively, and well controlled
Group underlying operating expenses.
Ms Sadik also added that the Group’s liquidity remains strong where
loan-to-deposit ratio stood at 75.9% and asset quality remains high with credit
provisions held against non-performing loans continue to exceed 100%. Arab Bank
Group maintains solid capital base that is predominantly composed from common
equity with capital adequacy ratio stood at 16.4%.
Ms Sadik commented that Arab Bank has continued its digital transformation
journey which is a major pillar in the Bank’s strategy, providing a
comprehensive range of banking solutions and services that cater to the evolving
banking needs of its customers. The Bank has recently released pioneer
applications in Jordan, including “Arabi Next” application; targeting Small and
Medium enterprises and “Arabi Junior” application; targeting children and teens.
This is in addition to Arab Bank’s ongoing updates to “Reflect”, the first
Neobank in Jordan, as part of the Bank’s constant efforts to deploy the latest
digital banking technologies.
Masri concluded by remarking on the strength of Arab Bank franchise, and its
diversified business model which allows it to effectively overcome challenges
and achieve sustainable results.
Arab Bank has recently released, for the 12th consecutive year, its Annual
Sustainability Report for the year 2021. This comes as part of Arab Bank’s
ongoing commitment towards integrating sustainability into its operations in a
strategic manner that complements the Bank’s constant efforts to support
achieving sustainable community development.
Arab Bank was named “Best Bank in the Middle East 2022” for the seventh
consecutive year by New York-based international publication “Global Finance”.
Last Thursday, First Abu Dhabi Bank (FAB) announced that the Group’s net profit
amounted to Dhs8 billion in the first six months of 2022, an increase of 50 per
cent compared to the same period last year.
In a statement, the bank said that the total income was Dhs12.5 billion, up 31
per cent year-on-year (YoY), including an Dhs3.1 billion net gain on the sale of
a majority stake in Magnati.
Hana Al Rostamani, Group Chief Executive Officer of FAB, said, “FAB delivered a
strong performance in the first six months of 2022 with a 50 per cent increase
in net profit compared to the same period in 2021. Despite heightened global
market volatility, our core businesses maintained solid growth momentum
reflecting healthy pipeline execution across our diversified franchise and our
ongoing strategic focus on deepening client relationships.”