Tough outlook for UAE banks as liquidity squeeze hits earnings | GulfNews.com:
"After reporting robust growth in assets and profits in the first two quarters of this year, the UAE banks are expected to face strong headwinds on both these fronts from the fourth quarter as liquidity tightens.
With the third-quarter results set to be announced starting this week, analysts do not expect in a sharp deceleration in both asset growth and asset quality, but say there could be early signs of fatigue as the knock-on effects of lower oil prices on growth will be reflected in credit growth and a gradual reversal in the declining trend in credit losses over the past several quarters.
Declining asset prices, particularly the volatility in the stock markets and a drop in real estate transactions in the UAE, are also seen holding back asset growth and asset quality in a few quarters ahead."
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