UAE banks’ assets surge 7.6% | ZAWYA MENA Edition

UAE banks’ assets surge 7.6% | ZAWYA MENA Edition

Total assets of banks operating in the UAE increased by 7.6 per cent year-on-year at the end of September 2020, and two per cent quarter-on-quarter to Dh3.253 trillion, the Central Bank of the UAE (CBUAE) said.The CBUAE report said combined gross credit of the banks rose by 4.9 per cent year-on-year and 0.8 per cent q-o-q, reaching Dh1.805 trillion at the end of September 2020. The report, which has examined the monetary and banking activities as well as developments in the UAE financial markets during the third quarter of 2020, also reviewed ratios of annual change over the period from September 2019 to September 2020.Resident deposits increased by 6.4 per cent to Dh1.716 trillion and non-resident deposits increased by 0.8 per cent year on year at the end of the third quarter of 2020.Quarter on quarter, non-resident deposits fell by 4.5 per cent, reaching Dh191.3 billion by the end of September 2020.Global ratings agency S&P said higher cost of risk and lower margins would reduce profitability of banks in the UAE for 2020-2021, but most of them are expected to remain profitable.“We believe UAE banks' reduced profitability will last longer due to the high proportion of non-interest-bearing deposits in their