Top banks’ second-quarter net profit jumps 21%, signalling slow recovery for Q3

Top banks’ second-quarter net profit jumps 21%, signalling slow recovery for Q3

DUBAI “” Leading global professional services firm Alvarez & Marsal (A&M) has released its latest UAE Banking Pulse for Q2 2020. The report reveals that the top 10 UAE banks posted a 21.2% jump in their net profits for the April-June quarter, as a result of lower provisioning and increased cost efficiency.

Like many banks globally, the UAE's top lenders are likely to focus more on improving their efficacy in the coming period as a challenging operating environment demands increased efforts toward cost optimisation.

Despite challenging market conditions, the banks witnessed a fringe surge in loans and advances, and deposit growth. This has added liquidity in the banking system.

Lenders witnessed a considerable contraction in net interest margins (NIM) in the second quarter due to many factors such as the shift