UAE banks to report robust results for full year 2021

UAE banks to report robust results for full year 2021

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UAE banks to report robust results for full year 2021

Dubai: UAE banks are expected to report robust results for full year 2021 supported by improved economic conditions, rising operating incomes, better operational efficiencies and a modest recovery in interest margins. Top UAE banks had delivered consistent improvement in asset quality and profitability in the first three quarters of 2021 supported by steady recovery in the local economy. Data shows, at the end of the third quarter, cost to income (C/I ratio) was at the lowest since 2018 with operating incomes far outpacing costs. While the focus on reining in operating costs through optimization of branch network, rationalistaion of workforce, operating efficiencies gained from recent mergers and significant adoption of digitialisation have seen big cost savings for banks. According to the Central Bank of UAE’s (CBUAE’s) assessment of economic activity and growth in the third quarter, the non-oil sector continued its upward trend in Q3 2021, as a result of the pick-up in local and global demand, while the country continued to be a leader in containing the spread of the coronavirus. Latest Purchaning Manager’s Index (PMI) data shows the UAE economy posted rapid growth in the non-oil private sector economic activity in December with output growth running at a

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