With higher interest rates, UAE banks are headed for pre-pandemic profitability | Banking – Gulf News
High oil prices and economic activity coupled with rising interest rates will lift the UAE banking sector’s profitability to pre-pandemic levels.
While the risk perception on overall asset quality is improving - with significantly lower provisions reported in the first quarter of 2022 - margins are on the rise. All three leading credit rating agencies have assigned a stable outlook for UAE banks.
“We have changed our outlook for the UAE’s banking system to stable from negative - this reflects our view that operating conditions in the UAE are returning to normal,” said Moody’s.
According to Fitch, “Financial performance is recovering towards pre-pandemic levels, and the agency recently revised its outlook on the operating environment to stable, reflecting substantially lower risks to the banks.”
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