KHALEEJ TIMES, Tuesday, Jan 19, 2021 | Jamadi Al Thani 6, 1442
Assets of Abu Dhabi, Dubai banks rise to Dh2.95 trillion
Emirates:
The total assets of banks in Abu Dhabi and Dubai surged to nearly Dh2.947
trillion in seven months to the end of November of 2020 from Dh2.897
trillion recorded at the end of April, according to data from the Central
Bank of the UAE.
The banks of the two largest emirates accounted for 92 per cent of the total
assets of the banking system in the UAE as of November.
Total assets of all banks operating across the UAE increased by 7.6 per cent
year-on-year at the end of September 2020 to Dh3.253 trillion.
While banks in Dubai saw their total assets reaching Dh1.516 trillion, Abu Dhabi
banks recorded total assets of Dh1.431 trillion by the end of November 2020, the
Central Bank data shows.
The total loans and advances given by Abu Dhabi and Dubai banks reached Dh1.637
trillion at the end of November. Of this, banks in Abu Dhabi and Dubai accounted
for Dh751 billion and Dh865.6 billion respectively.
Total banks deposits of the two emirates reached Dh1.712 trillion by the end of
last November with Abu Dhabi and Dubai accounting for Dh884.2 billion and
Dh827.7 billion respectively.
The Central Bank of UAE statistics show that the combined value of the capital
and reserves of Abu Dhabi and Dubai banks totalled Dh365.5 billion, which
constitutes about 92 per cent of the total capital and reserves of the UAE
banking system.
In September 2020, total assets of all banks operating in the UAE increased by
7.6 per cent year-on-year and by two per cent quarter-on-quarter to Dh3.253
trillion.
According to Fitch, the general business and operating environment for banks in
the UAE to remain as challenging in 2021 as in 2020."Nevertheless, we expect
real GDP to recover by 1.7 per cent in 2021 after falling by around 6.8 per cent
in 2020. We expect defaults to rise as government support measures wane,” said
Redmond Ramsdale, head of Middle East Bank Ratings at Fitch.
Fitch expects asset quality of UAE banks to deteriorate in 2021 as payment
holidays expire and not all borrowers are able to weather the downturn. This is
particularly true in real estate, contracting, retail, aviation and hospitality
sectors.
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