UAE banks see declining returns as costs rise | ZAWYA MENA Edition

UAE banks see declining returns as costs rise | ZAWYA MENA Edition:

"Nine of the ten biggest listed banks in the United Arab Emirates reported declining returns at the end of last year as costs increased, according to Alvarez and Marsal.

The professional services firm’s UAE Banking Pulse report stated that the combined return on equity for the ten biggest banks dropped to 14.3 percent during the fourth quarter of 2017, down from 15.1 percent in the prior quarter.

Pietro Castronovo, a senior director at the firm, told journalists at a launch event for the report that declining returns could be attributed to three main factors - a higher cost-to-income, higher costs of risk and a decline in loan-to-deposit ratios."



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