#UAE's first half bank 2021 results point to economic recovery gaining traction | Banking – Gulf News

UAE's first half bank 2021 results point to economic recovery gaining traction | Banking – Gulf News

Financial results of UAE banks for the first six months of 2021 point to sustained improvement in profitability supported by gains in cost efficiency, improving asset quality and gains in non-interest income streams.

The overall gains in the bank results for the first half of the current year compared to the same period last year confirms the improvement in the economic conditions supporting credit growth and credit quality with lower cost of funds.

Abu Dhabi Commercial Bank (ADCB) reported a net profit of Dh2.52 billion for the first half of 2021, up 76 per cent compared to the same period in 2020.

For the second quarter of 2021, the bank reported Dh1.4 billion net profit, up 14 per cent year on year and 25 per cent quarter on quarter.

“The growth in net profit is a result of the increase in a diversified revenue stream, disciplined cost control and a prudent approach to risk management,” said Khaldoon Al Mubarak, Chairman of ADCB.

Mashreq, a leading bank reported Dh85 million net profit for the first half (H1) of 2021. The bank’s operating income increased by 1.4 per cent over the previous year to Dh2.9 billion due to improvements in fees and commission.

Mashreq’s non-interest income to operating income ratio improved to 49.8 per cent compared to 47.1 per cent in the first half of 2020.

Operating profit at Dh1.6 billion is a 4.6 per cent increase compared to first half of 2020 as a result of increased operating income and reduced operating expense.

“Recording a net profit of Dh85 million during the first half of 2021, I believe we are fortunate to have been steered through the pandemic and its far-reaching impacts by a national leadership that has taken proactive measures to protect business interests, jobs and economic stability,” said AbdulAziz Al Ghurair, Chairman of Mashreq Bank.