FINANCIAL NEWS

UAE banks’ credit to surge: Frost & Sullivan

08 Jan 2012

(MENAFN) US Frost & Sullivan said that credit by UAE banks would be expected to increase as the country planned to boost public expenditure due to high oil revenues, reported Emirates 24/7.

The agency added that in spite of weak asset quality, higher loan to deposit ratio, constant provisioning to cover non-performing loans, a decline in deposits volume and bad debts from government related holdings, last y ear, banks in the country recorded better income.

It also said that the country’s 23 national banks and 28 foreign units were able to establish a strong equity capital base, adding that nearly all banks had a capital adequacy ratio between 16 percent and 20 percent.

It is worth noting that during the current year, profitability of the UAE’s banking industry is forecasted to stay at the same level as in 2011 due to the euro-zone’s sovereign debt crisis.

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