LONDON, Aug 27 (AN): Profits at the top ten UAE banks jumped by 21.25 per cent in the second-quarter compared to the previous three months as they trimmed costs to cope with the impact of the coronavirus pandemic.
Despite challenging market conditions, the banks witnessed a fringe surge in loans and advances, and deposit growth according to a report from the Alvarez & Marsal (A&M) consultancy.
Still, lenders also recorded a contraction in net interest margins in the second quarter due to many factors, such as the shift to the marginal cost of the funds-based lending rate, as well as all-time low interest rates.
Net interest income, a key number for banks, fell 7.3 per cent for the country's top lenders while net fee income plunged 23 per cent as lockdowns limited the income from cards and new business volumes.
It means that despite increase in profitability, the sector expects a tough year ahead.
Top UAE bank profits surge in Q2 as lending jumps
FE Team | Published: August 27, 2020 22:25:37
Top UAE bank profits surge in Q2 as lending jumps
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