gulfnews : Non-performing loans still an issue for banks in the UAE

The second quarter results of the UAE banks suggest that even after going through 12 consecutive quarters of balance sheet repair many are still struggling with their non-performing loans (NPLs) and mounting impairment provisions.

Thanks to the aggressive deleveraging and cautious lending practices, a number of banks have seen a decline in their provisions in the second quarter of 2011, but at slower pace.

Margins faced an additional squeeze from new central bank regulations on retail loans and fees charged on banking services from May 1 this year.

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