Bankers facing earnings squeeze

Profits for the third quarter at UAE lenders will be pressured by slow growth in lending, hindered by lingering financial uncertainty, an increase in non-performing loans as well as provisions for bad debts, analysts project.

UAE banks are likely to struggle with slow loan growth and a rise in provisions that will put a dent in profits until at least the middle of next year, analysts say.

With the banks’ third-quarter earnings on the way, analysts project that lenders will continue to see a rise in non-performing loans and will retain cash on their balance sheets in the form of provisions to account for them.

Related articles by Zemanta

• No Easy Way for Banks to Show Growth (online.wsj.com)