UAE’s Top 10 Banks Post $5.8 Billion Income in Q2 2024 Amid Slower Growth

 UAE, 20 August, 2024 : The UAE’s top 10 banks recorded an aggregate income of AED 21.5 billion ($5.8 billion) in Q2 2024, driven by higher interest income and lower impairment charges, according to Alvarez & Marsal (A&M). Improved asset quality and a return on equity of 20.8% also contributed, though deposit growth slowed to 0.4% from 5.1% in the previous quarter.

Loans and advances rose by 3.2%, with retail lending up 8% quarter-on-quarter. Net interest income grew by 2% due to a higher loan-to-deposit ratio, even as interest rates remained stable. 

Cost efficiencies worsened, with the cost-to-income ratio rising to 28.1% from 27.9% in Q1, as operating expenses outpaced income growth. However, cost of risk hit a multi-year low of 0.3%, with impairments dropping to AED 1.3 billion, reflecting stronger credit quality.

Banks surveyed included First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank, and others, highlighting the sector’s mixed performance amid stable but slowing growth.

Source : www.zawya.com