FINANCIAL NEWS

UAE bank lending rises 4.2% in 11 months

13 Jan 2012

(MENAFN) UAE’s Central Bank said that during the January-November period of 2011, bank lending in the country rose 4.2 percent, from a decline of 1.3 percent in 2010’s same period, reported Emirates 24/7.

The bank added that in the period, deposits grew 0.4 percent, to remain behind the lending growth; on the other hand, it said that during the past 3 years, efforts on raising deposits have been emphasized as a result of the deteriorating net loans to customers, reaching 105 percent in April 2010.

Meanwhile, Standard & Poor’s said that the bulk of any credit growth would be predominantly generated by the Abu Dhabi banks, since they were operating with stronger balance sheets and healthier asset quality metrics.

It is worth noting that certain provisions for non-performing loans over the mentioned period jumped 20.1 percent, according to Standard & Poor’s, which expects provision levels to stay high in the current year.

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