UAE Business: Top ten UAE banks net income jumps 24.4pc to $3.43bn – Gulf Digital News

UAE Business: Top ten UAE banks net income jumps 24.4pc to $3.43bn – Gulf Digital News

The top ten UAE banks’ net income jumped 24.4% to AED12.6 billion ($3.43 billion) in the second quarter (Q2) driven by better asset quality, improved profitability and margins, said Alvarez & Marsal (A&M).

The country’s 10 largest listed banks are First Abu Dhabi Bank (FAB), Emirates NBD (ENBD), Abu Dhabi Commercial Bank (ADCB), Dubai Islamic Bank (DIB), Mashreq Bank (Mashreq), Abu Dhabi Islamic Bank (ADIB), Commercial Bank of Dubai (CBD), National Bank of Fujairah (NBF), National Bank of Ras Al-Khaimah (RAK) and Sharjah Islamic Bank (SIB).

Total interest income of the banks grew drastically by 19.5% QoQ (quarter-on-quarter) in Q2’22, boosted by higher interest income, said A&M, leading global professional services firm, in its latest United Arab Emirates Banking Pulse for Q2 2022.

Loans and deposits

The push and pull between loans and deposits reveals an improvement in customers’ personal economic standing. The rise in interest income has been spurred by a sharp rise in both advances and deposits. Total advances grew by 1.8% while deposits grew faster at 4.5%.

Aggregate non-interest income (NII) surged by 15.1% QoQ and the overall net interest margin (NIM) jumped by 26.1 bps QoQ due to higher benchmark rates. Overall asset quality improved as non-performing loans (NPL)/ loans and