Top UAE banks’ Q2 net profit jumps 21%; will focus on cost optimization

Top UAE banks’ Q2 net profit jumps 21%; will focus on cost optimization

The top 10 UAE banks posted a 21.2 percent jump in net profits for Q2 as a result of lower provisioning and increased cost efficiency. Additionally, according to a new report, top lenders are likely to focus more on improving their efficacy in the coming period, with increased efforts towards cost optimisation in response to a challenging operating environment. Despite the market conditions, the banks witnessed a fringe surge in loans and advances as well as in deposit growth. This has added liquidity in the banking system, professional services firm Alvarez & Marsal (A&M) said in its latest UAE Banking Pulse for Q2 2020.Asad Ahmed, A&M Managing Director and Head of Middle East Financial Services, said: “The profitability of the UAE banks in Q2 2020 rebounded as cost optimisation measures and