gulfnews : Asset quality of UAE banks to remain under pressure

Asset quality of leading UAE banks will remain under pressure compared to their regional peers during the current year and could linger on into next year, according to Mohammad Hawa, banking analyst with Credit Suisse.

'UAE banks are yet to experience the peak in their non-performing loans [NPLs] to 8.4 per cent, on our estimates for 2011 and will have to adjust to stricter regulatory measures mainly on consumer lending and fees,' Hawa said in a report.

The NPL ratio for 6 leading UAE banks Credit Suisse covers stood at 7.2 per cent and the provision coverage stood at 51 per cent in 2010.

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