Top 10 UAE banks record 5.6% rise in quarterly profit on lower impairment charges – The National

Top 10 UAE banks record 5.6% rise in quarterly profit on lower impairment charges – The National

The aggregate net profit of the UAE's 10 largest banks increased by 5.6 per cent on a quarterly basis in the third quarter, boosted by lower impairment charges and a steady increase in net interest income.The cumulative net income for the three months to the end of September climbed to Dh20.2 billion ($5.5 billion), professional services consultancy Alvarez & Marsal said in its UAE Banking Pulse report on Thursday.Total net interest income, the amount banks earn from their lending activities minus the interest they pay to depositors, grew 5.5 per cent quarter-on-quarter as total interest income for the period rose 11.4 per cent.“A robust third quarter for the UAE banks is buoyed by a higher interest rate environment and a meaningful reduction in impairment charges,” said Asad Ahmed, Alvarez & Marsal's managing director and head of Middle East Financial Services.“Lenders are benefiting from healthy liquidity conditions supported by high oil prices, foreign capital inflows and moderate credit demand amid rising interest rates.”The sharp economic rebound in the broader region and the UAE is expected to continue to support banking sector profitability.The UAE economy expanded by 3.7 per cent annually in the first half of the year, driven by strong non-oil