A&M’s UAE Banking Pulse examines data of the 10 largest listed banks in the UAE, comparing the quarter’s results to previous results. Using independently sourced published market data and 16 different metrics, the report assesses banks’ key performance areas, including size, liquidity, income, operating efficiency, risk, profitability, and capital.

Explore all of our UAE Banking Pulse reports below:

FY 2022 UAE Banking Pulse
The report suggests that the top ten UAE banks pointed towards increasing profitability, improving ratios around asset quality, returns on equity and assets alongside strengthening capital positioning. The aggregate net income increased by 31.7 percent YoY for FY’22 to AED 49.8bn driven primarily by higher net interest income (NII) by 26.7 percent YoY.

Q4 2022 UAE Banking Pulse
The report suggests that the top ten UAE banks witnessed a decrease in profitability for most of the banks on the back of high impairment charges. L&A growth was marginally up by 0.2% QoQ, while deposits increased by 1.4% QoQ. Aggregate NII increased by 16.7% QoQ and the overall NIMs expanded by 34bps QoQ due to higher benchmark rates. Overall asset quality deteriorated marginally as NPL/ L&A was increased 7bps to 5.6% sequentially.

Q3 2022 UAE Banking Pulse
The report suggests that the top ten UAE banks reported an increase in profitability driven by higher core interest income despite a slowdown in loans and advances (L&A) growth. Aggregate NII surged by 12.2 percent quarter-on-quarter (QoQ) and NIMs improved by 18bps QoQ supported by higher credit yield on back of rising benchmark rates. Asset quality improved as non-performing loans (NPL)/ L&A fell by 0.2 percent to 5.5 percent during the quarter.

Q2 2022 UAE Banking Pulse
The report suggests that the top ten UAE banks have reported a significant rebound in quarterly profits for Q2’22, as the lenders witnessed an increase in profitability driven by core interest income. Total interest income of the banks grew drastically by 19.5 percent QoQ (quarter-on-quarter) in Q2’22, boosted by higher interest income.

Q1 2022 UAE Banking Pulse
The report suggests that the Q1’22 results for most of the banks in the UAE highlighted an increase in profitability, despite lower non-interest income. The loans and advances (L&A) for the top ten banks in the UAE increased by 2.8 percent quarter on quarter (QoQ) as the economic environment improved.

FY 2021 UAE Banking Pulse
The report suggests that the profitability of the UAE’s banking sector recovered significantly in 2021 as the economy continued to bounce back from COVID-19. Overall, the banks have performed well on key income categories related to the markets, which continue to show elevated activity.

Q3 2021 UAE Banking Pulse
The report indicates that while balance sheet growth slowed down, there was a sharp rise in earnings indicating that banks are prioritizing profitability over growth. Third quarter earnings of the top ten banks pointed towards increasing profitability, higher return ratios and an overall improved credit outlook.

Q2 2021 UAE Banking Pulse
The report highlights that the top ten UAE banks managed a healthy rebound in profitability and balance sheet metrics.

Q1 2021 UAE Banking Pulse
The report highlights that the top 10 UAE banks started the year on a mixed note, as the aggregate net income increased by 85 percent QoQ, due to a decline in operating expenses and impairment charges which supported the overall profitability. However, loan & advances continued to contract with a 0.7 percent decrease in fiscal first-quarter whilst deposits increased to 1.2 percent, after declining in Q4’2020.

FY 2020 UAE Banking Pulse
The report suggests that while operating environment for the UAE’s banking sector is expected to remain less volatile in 2021 compared to last year, banks might witness deterioration of their asset quality after the completion of Central Bank of the UAE’s deferral programme in June 2021. Aggregate net profit of the top 10 UAE banks declined by 38.3% YoY, on the back of lower operating income and increased provisions.

Q3 2020 UAE Banking Pulse
The report reveals that the top 10 UAE banks’ total interest income continued to decline for the third consecutive quarter reporting, 7.7% quarter over quarter (QoQ), as lower interest rate environment continued to pressure banks’ asset yield. After a relatively stronger second quarter, net income declined by 3% QoQ due to lower interest and other operating income, which continued to impact profitability.

Q2 2020 UAE Banking Pulse
In this quarterly series, we share results from our research examining the top ten largest listed UAE banks by assets, and highlight key performance indicators of the UAE banking industry. The Pulse aims to help banking executives and board members stay current on industry trends.

Q1 2020 UAE Banking Pulse
The report suggests that the top 10 UAE banks reported a combined 6.3% quarter-on-quarter (QoQ) drop in interest income, largely due to the low interest rate environment. The net profit declined by 22.4% QoQ, on account of a 3.6% drop in operating income and a 35% increase in provisioning. Consequently, the average return on equity (RoE) for the universe was impacted by the reduced operating income due to a series of rate cuts and increased provisioning.

Q3 2019 UAE Banking Pulse
In this quarterly series, we share results from our research examining the top ten largest listed UAE banks by assets, and highlight key performance indicators of the UAE banking industry. The Pulse aims to help banking executives and board members stay current on industry trends.

Q2 2019 UAE Banking Pulse
In this quarterly series, we share results from our research examining the top ten largest listed UAE banks by assets, and highlight key performance indicators of the UAE banking industry. The Pulse aims to help banking executives and board members stay current on industry trends.

Q1 2019 UAE Banking Pulse
In this quarterly series, we share results from our research examining the top ten largest listed UAE banks by assets, and highlight key performance indicators of the UAE banking industry. The Pulse aims to help banking executives and board members stay current on industry trends.

Q3 2018 UAE Banking Pulse
The report shows that liquidity remained stable, but profitability decreased slightly as a result of increased cost of funds.

Q2 2018 UAE Banking Pulse
The report shows that UAE banks’ profitability continued to increase, with operating income and net interest margins significantly higher than in the previous quarter.

Q1 2018 UAE Banking Pulse
The report shows that UAE banks continue to perform well, with higher levels of profitability, and liquidity is expected to remain healthy for the remainder of 2018.

Q4 2017 UAE Banking Pulse
The report shows that UAE banks continue to perform well, albeit with lower levels of profitability, largely the result of costs growing at a faster rate than operating income. The rise in costs in the final quarter of the year is a seasonal feature and quite normal, as spending budgets get used up before year end. The other main trend has been an increase in liquidity, as deposits grew at a faster rate than loan advances.

Q3 2017 UAE Banking Pulse
The report shows that UAE banks are generally performing well, with overall higher profitability. The underlying theme is a rise in profitability, on the back of an increase in loans and advances, and a rise in yield on credit. The result was higher levels of interest income and, with costs remaining steady and a lower cost of funding, banks saw higher returns on equity.

Q2 2017 UAE Banking Pulse
The report finds that while overall profitability has decreased slightly due to lower non-interest income and leverage, net interest margins have increased. Moreover, the cost-to-income Ratio (C/I) has decreased, and the risk profile is broadly healthy.

Q1 2017 UAE Banking Pulse
The report compares the quarterly data of the 11 largest listed UAE banks in the first quarter of 2017 (Q1 2017) against the last quarter of 2016 (Q4 2016), as well as identifying prevailing trends throughout the intervening period.

Q4 2016 UAE Banking Pulse
The report compares results from our research examining the 10 largest listed UAE banks and highlight key performance indicators of the UAE banking industry. The Pulse aims to help banking executives and board members stay current on industry trends.