UAE banks recorded steady profit growth in Q3 as funding costs take focus
Dubai: UAE banks are sustaining earnings growth through expanding loan books, rising fee income and improved credit quality, with third-quarter disclosures shifting attention towards the cost of funding their next phase of lending. Get updated faster and for FREE: Download the Gulf News app now - simply click here. First Abu Dhabi Bank , Emirates NBD and Abu Dhabi Commercial Bank , the three…
UAE banks reported steady profit growth in Q3, with lenders Abu Dhabi Islamic Bank, Mashreq, and Dubai Islamic Bank also showing expansion. The focus shifted to the cost of funding as loans increased faster than deposits at several major banks. Net interest margins improved but varied across the sector, with Abu Dhabi Islamic Bank's net interest margin improving to 1.93% year-on-year.
Non-interest income also played a role in supporting earnings at some banks, such as Emirates NBD and ADCB. Improving credit quality and asset quality contributed to stronger profits across the sector. Capital remained a support for lending plans, with several banks reporting increased common equity tier one ratios and rights issues to strengthen capital.
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