UAE banks’ Q1-2022 results will reinforce recent asset gains and profitability | Banking – Gulf News
UAE banks could report strong profit growth in the first quarter of 2022 with a continued improvement in margins, asset quality and gains in operational efficiencies.
The strong recovery in the operating conditions in the UAE economy will be reflected in bank earnings, matched by lower loan loss provisions and improving loan yields despite sluggish loan growth.
The top 10 UAE banks accounting for nearly 80 per cent of banking assets in the country had reported an aggregate net income of Dh37.8 billion in 2021, 48.6 per cent higher year-on-year, mainly driven by higher operating income (+5.2 per cent) along with lower impairments (-30.1 per cent).
While the impact of declining operating costs and loan loss provisions is expected to directly reflect on net profits of banks in the upcoming results, the decision by the UAE Central Bank to continue some elements of its Targeted Economic Support Programme (TESS) will likely support loan growth.
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