Many UAE banks have not fully disclosed losses

An exclusive survey of bankers conducted by Emirates Business reveals that a majority of them believe that many UAE banks have not fully disclosed their losses.

Thirtyfive per cent of bankers polled believe that up to 25 per cent of the banks in the country may still be hiding their losses while another 20 per cent said that between 25 and 50 per cent of the banks may be doing so.

Despite losses, all bankers surveyed believe that the industry remains strong despite the crisis. One hundred per cent of the polled bankers said "yes", when asked if the banking industry is strong.

Bankers also expect to witness an increase in defaults. A top official of a large local bank based in Abu Dhabi said that while non-performing loans (NPLs) as a percentage of the sector's loanbook are very low at present, the risk of NPLs rising is significant.

Survey snapshot