288.1 billion dirhams investment banks nine major UAETruth Consultancy
In the third quarter of this year, a growth of 11.8%
Source: Abu Dhabi – Abdel Fattah Montasser
Date: December 12, 2016
A recent financial report showed that the total investments in nine major banks, the banking sector of the UAE amounted to 288.1 billion dirhams at the end of the third quarter of this year, a strong growth of 11.8% compared to the end of the third quarter of 2015, reaching 257.7 billion dirhams, up 30.4 billion dirhams.
He said Reda Mosallam general manager of the company «Truth» Economic Consultancy in the report issued to total shareholders’ equity for the nine banks that have been selected to express the UAE banking sector rose from 238 billion dirhams at the end of September 2015 increased by 18.9 billion dirhams to reach 256.9 billion dirhams at the end of September, growth of 7.9 % reference this rise to the increase in retained earnings, pointing out that the total interest income for the sample banks at the end of September, 46.3 billion dirhams compared to 43.7 billion dirhams at the end of September 2015 increased its 6% by 2.6 billion dirhams.
He explained that the net interest income and other operating revenue for the banks of the respondents was 50.8 billion dirhams, compared with 50 billion dirhams at the end of the third quarter of 2015 growth of 2% a reference to an increase in banks’ interest income, fees and commissions and gains in foreign currencies and other operating revenue conversion noting that net profit sample banks witnessed a stable with a tendency to rise compared to the third quarter of 2015 which saw an increase worth 79.9 million dirhams for up to 25.9 billion dirhams at the end of September this year, compared with 25.8 for the same period of the previous year.
He said that the sample banks set to reflect the UAE’s banking sector and included National Bank of Abu Dhabi and Abu Dhabi Commercial Bank and Union National Bank and First Gulf Bank and Abu Dhabi Islamic Bank and National Bank of Umm Al Qaiwain Emirates National Bank of Dubai and Commercial Bank of Dubai, Mashreq Bank.
Requirements «Basel 3»
The report showed that all banks and national banks, the state has made great efforts to achieve the requirements of «Basel 3» and even exceeded the required ratio, a 10.5% to 17.22% by the end of September 2016, an increase of about 6.72%.
He pointed out that following the global financial crisis that hit the international economic business rules which forced those in charge of the Basel Committee on Banking Supervision to take a set of new rules that will work on a capital increase by more than 3-fold capital, which is imperative for banks to keep it as a reserve size in the midst of efforts to push banks toward more conservative positions and force them to take cover behind the greatest bulwark against potential losses.
He explained that the ways of modern banking risk measurement «any rules precautionary» stipulated by the Basel Committee is among the most important methods used to measure the degree of risk, especially in the banking world, adding that in any case, the index «Basel 3» rate has given the opportunity to all the international banks period time for the application of this index at the end of fiscal year 2018.
The report called for a full meeting of all banks in the country to issue a code of honor real and practical to provide technical and financial support for small and medium enterprises through the allocation of a percentage of the net annual bank profits ranging between 3% and 5% and directing certain mechanism to be agreed upon between them to support and promote such projects on favorable terms and guarantees can of those projects and companies that died out.
The report pointed to the increase in the total sample selected banks assets to express the banking sector in the UAE amounting to 160.6 billion dirhams, where the 1.8 trillion dirhams by the end of September 2015 and rose to 1.9 trillion dirhams at the end of September 2016 growth of 9%, while loans and advances granted by the sample banks by 66 rose billion dirhams from 1.1 trillion to 1.2 trillion dirhams dirhams at the end of the third quarter of 2016 growth of 5.9% and customer deposits increased by 9.4% increased by 110.3 billion dirhams from 1.2 trillion dirhams to 1.3 billion dirhams.