The four largest banks in the UAE have reported a 21% year-on-year increase in their combined profits during the second quarter of 2018, recording AED 8 billion.
The rise in interest income and the decline in a group of provisions boosted the profits of First Abu Dhabi Bank (FAB), Emirates NBD, Abu Dhabi Commercial Bank (ADCB), and Dubai Islamic Bank (DIB), according to a report released by Moody’s Investors Service.
“We expect core profitability for the large UAE banks to remain broadly stable over the next 12-18 months, as interest earnings hold steady at current levels,” president and senior credit officer at Moody’s, Nitish Bhojnagarwala, commented.
The four banks’ positive results have stemmed from a 10% year-on-year hike in net interest income, Moody’s said.
“The banks also benefited from a 27% year on year reduction in loan loss provisions, as they were allowed to take expected future credit losses from their capital, a one-off measure to facilitate IFRS 9 adoption in Q1 2018,” the international rating agency revealed