UAE banks post Dh90.8 billion profit, assets climb to Dh5.3 trillion

The Central Bank of the UAE's Financial Stability Report for 2025 reveals a robust banking sector, with UAE banks posting a net profit of Dh90.8 billion, marking an 11.7% increase from the previous year. The total assets of the banking system surged 17.1% to Dh5.3 trillion. Loan portfolios expanded by 17.8%, fueled by higher retail and private corporate lending. Deposits rose by 16.1%, with retail deposits up 13.8% and private corporate deposits climbing 22.8%.

Mortgage lending saw a notable growth of 23.9%, with an average loan-to-value ratio of 60%. UAE banks' investments surged to Dh774.3 billion by the end of April 2025. The banking system's loan-to-deposit ratio was 77.7% at year-end, up from 76.6% in 2024. The non-performing loan ratio improved to 3.3% in 2025, down from 4.7% in 2024 and 8.2% in 2020. The Capital Adequacy Ratio stood at 17.0%, and the Common Equity Tier 1 ratio was 14.4%.

CBUAE Governor Khaled Mohamed Balama emphasized the bank's commitment to strengthening supervisory frameworks and enhancing the financial system's resilience against future risks, ensuring financial stability and sustainable economic growth. The CBUAE's stress tests revealed that the sector remained above minimum regulatory capital requirements, even under severe adverse conditions.

Liquidity reserves were estimated at Dh462 billion for a 30-day stress period and Dh371 billion for 60 days. Meanwhile, the usage of the Aani payment platform saw a remarkable 183% increase, with over 11.7 million customers enrolled, facilitating transactions up to Dh50,000 within 24 hours.