RIYADH, Nov 25 (Arab News): The UAE banking sector recorded a 3.9 per cent quarterly increase in deposits during the third quarter, driven primarily by a 5.6 per cent rise in time deposits, according to a recent report. This solid growth in deposits outpaced the 3.5 per cent rise in loans and advances over the same period.
Retail borrowing was the key driver behind the loan growth, with retail lending increasing by 4.9 per cent quarter on quarter.
However, profitability for the UAE's leading banks declined, as impairment charges surged by 124.9 per cent quarter on quarter, reaching 2.9 billion dirhams ($789.5 million), according to Alvarez & Marsal, a global professional services firm.
This sharp increase in impairments led to a 5.5 per cent drop in net income, causing a contraction in return on equity by 223 basis points and a decline in return on assets by 16 basis points.
UAE banking sector sees 3.9pc growth in deposits
FE Team | Published: November 25, 2024 23:50:49
UAE banking sector sees 3.9pc growth in deposits
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