Top UAE banks set to see profitability return to pre-pandemic levels | ZAWYA MENA Edition
Growth in net interest income will drive profitability to pre-pandemic levels at the largest UAE banks in the next 12-18 months, according to a report by Moody's Investors Service.
The growth in net interest income will be underpinned by rising interest rates expectations and strong business momentum supporting non-interest income, even as provisioning efforts ease, said the report published on Monday.
"The four largest banks' profitability rebounded to near pre-pandemic levels in 2021, largely reflecting robust non-interest income and softening loan loss provisions," said Nitish Bhojnagarwala, a VP-Senior Credit Officer at Moody's and the author of the report.
"We expect a full return to pre-pandemic levels of profitability in the next 12-18 months."
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