UAE banks on sound footing but risks could rise | GulfNews.com:
"The overall health of the banking sector in the UAE is expected to remain sound because of their strong initial financing positions and the resilience of the economy in the face of the sharp decline in oil prices, according to the Institute of International Finance (IIF), a Washington based association of global financial institutions.
The strong profitability of the banks during the last two years and the balance sheet strength built over the past six years through rigorous provisioning for bad debts is expected to keep the banks strong against any potential weakening of asset prices that could result in a jump in non-performing loans (NPAs).
UAE banks posted double-digit growth in net profits last year and maintain healthy capital adequacy ratios and high provisions on bad loans. Although NPLs declined significantly from 8.1 per cent of total loans in 2013 following a reclassification of Dubai World the ratio still remains high at about 6 per cent."
'via Blog this'
No comments:
Post a Comment