Profitability at the #UAE's four largest banks to remain resilient in 2020 - The National

Profitability at the UAE's four largest banks to remain resilient in 2020 - The National:

Profitability at the UAE's four largest banks is set to remain resilient in 2020, as solid public-sector loan growth balances the effects of competition and subdued private-sector credit demand, a new report from Moody’s Investors Service found.

The four lenders – First Abu Dhabi Bank (FAB), Emirates NBD, Abu Dhabi Commercial Bank (ADCB) and Dubai Islamic Bank (DIB) – reported a combined net profit of Dh37 billion for 2019, up 13 per cent from the previous year on the back of growth from organic lending, acquisitions and strong non-interest income. A large one-off gain of $1.2bn (Dh4.40bn) at Emirates NBD from the partial disposal of a stake in payments company Network International in April last year, was also a factor.

The four banks accounted for 73 per cent of banking assets in the UAE as of December 2019.

"We expect the banks' profitability to remain resilient in 2020, with a net income to tangible assets ratio at around 1.8 per cent," said Mik Kabeya, assistant vice president and analyst at Moody's.