UAE banks' net margins hit by higher funding costs | ZAWYA MENA Edition:
Demand for new loans outstripped deposit growth at nine of the 10 listed banks in the United Arab Emirates in the first quarter of 2019, according to a new report.
The UAE Banking Pulse report from financial services consultancy Alvarez and Marsal found that the combined loan-to-deposit ratio for the 10 lenders increased to 88.3 percent by the end of March - up from 86.4 percent at the end of 2018.
Loans and advance grew by 1.54 percent during the quarter, compared to 0.5 percent during the last three months of 2018. However, deposits shrank by 0.67 percent, compared to a 1.77 percent growth during prior quarter.
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