Performance review: Impairment charges weigh heavily on top #UAE banks' Q4 profits | ZAWYA MENA Edition

Performance review: Impairment charges weigh heavily on top UAE banks' Q4 profits | ZAWYA MENA Edition:

Asset quality weakness leading to higher impairment charges weighed on the financial performance of the UAE’s largest banks in the fourth quarter of 2019.

Emirates NBD, First Abu Dhabi Bank, Abu Dhabi Commercial Bank and Dubai Islamic Bank, accounting for nearly 70 per cent of total bank assets in the country altogether, all saw higher impairment charges.

Poor balance sheet performance, deteriorating asset quality and heavy provisions were the key highlights from the quarter, Monsef Morsey, co-head of research at CI Capital, told Zawya via email.

First Abu Dhabi Bank saw Q4 net profit rise 5 percent year-on-year (y-o-y) to 3.08 billion dirhams. Impairment charges rose 17 percent to 499 million dirhams.