Banks give Dhs696.7 billion facilities to business and industrial sector

Credit facilities provided by national banks to the business and industrial sector rose 1.92 per cent (Dhs13.1 billion) in the first four months of 2022 to Dhs696.7 billion from Dhs683.6 billion in the corresponding period in 2021, according to figures revealed by the Central Bank of the United Arab Emirates (CBUAE).

According to the apex bank’s figures, the cumulative balance of credit provided by national banks to the sector on a year-on-year basis grew by 2.14 per cent or Dhs14.6 billion.

The value of credit facilities extended by national banks to the sector accounted for 89.1 per cent of the gross accumulative credit balance, which reached Dhs782.5 billion by the end of last April, while the share of foreign banks stood at 10.9 percent or Dhs85.8 billion.

The credit facilities extended by the UAE national banks to the two sectors stand at Dhs13 billion, accounting for 79 percent of total facilities provided by all UAE-based banks to the two sectors during Q1. This accounts for 55 per cent of the total loans provided by UAE banks to all business activities performed by the private sector during the reference period.

The UAE national banks provided Dhs713 billion to the two sectors during Q1 as compared to Dhs700 billion during last quarter of 2019.

ABG posts $252m income: Arab Bank Group reported a net income after tax for the first half of 2022 of $252 million as compared to $182.4 million for the same period last year, recording an increase of 38%.

The Group loan portfolio grew by 6% to reach $35.7 billion as of June 30, 2022 compared to $33.8 billion for the same period last year, while customer deposits grew by 2% to reach $47.1 billion compared to $46 billion for the same period last year. The increase in loans and deposits in most areas of operations are in line with the Bank’s sustainable growth strategy to expand and diversify its clients, loans and deposit base. The Group maintained its strong capital base with a total equity of $10.2 billion.

Sabih Masri, Chairman of the Board of Directors, stated that the performance in the first half of the year reflects the Group’s prudent operating policies and strong financial position, despite challenging economic environment.

Ms Randa Sadik, Chief Executive Officer, stated that the underlying performance of the Group continues on its growth path with 6% growth in net operating income across the Bank’s lines of business driven by improvement in both net interest income and commission income by 4% and 17%, respectively, and well controlled Group underlying operating expenses.

Ms Sadik also added that the Group’s liquidity remains strong where loan-to-deposit ratio stood at 75.9% and asset quality remains high with credit provisions held against non-performing loans continue to exceed 100%. Arab Bank Group maintains solid capital base that is predominantly composed from common equity with capital adequacy ratio stood at 16.4%.

Ms Sadik commented that Arab Bank has continued its digital transformation journey which is a major pillar in the Bank’s strategy, providing a comprehensive range of banking solutions and services that cater to the evolving banking needs of its customers. The Bank has recently released pioneer applications in Jordan, including “Arabi Next” application; targeting Small and Medium enterprises and “Arabi Junior” application; targeting children and teens. This is in addition to Arab Bank’s ongoing updates to “Reflect”, the first Neobank in Jordan, as part of the Bank’s constant efforts to deploy the latest digital banking technologies.

Masri concluded by remarking on the strength of Arab Bank franchise, and its diversified business model which allows it to effectively overcome challenges and achieve sustainable results.

Arab Bank has recently released, for the 12th consecutive year, its Annual Sustainability Report for the year 2021. This comes as part of Arab Bank’s ongoing commitment towards integrating sustainability into its operations in a strategic manner that complements the Bank’s constant efforts to support achieving sustainable community development.

Arab Bank was named “Best Bank in the Middle East 2022” for the seventh consecutive year by New York-based international publication “Global Finance”.

Last Thursday, First Abu Dhabi Bank (FAB) announced that the Group’s net profit amounted to Dhs8 billion in the first six months of 2022, an increase of 50 per cent compared to the same period last year.

In a statement, the bank said that the total income was Dhs12.5 billion, up 31 per cent year-on-year (YoY), including an Dhs3.1 billion net gain on the sale of a majority stake in Magnati.

Hana Al Rostamani, Group Chief Executive Officer of FAB, said, “FAB delivered a strong performance in the first six months of 2022 with a 50 per cent increase in net profit compared to the same period in 2021. Despite heightened global market volatility, our core businesses maintained solid growth momentum reflecting healthy pipeline execution across our diversified franchise and our ongoing strategic focus on deepening client relationships.”