The net profit of eight national banks listed on the local financial markets reached 38 billion dirhams last year, a growth of 17.2% compared to its profits recorded in 2018, which amounted to 32.414 billion dirhams.

The growth in the profitability of banks that have disclosed their financial statements to date reflects the extent of development in the sector, which is one of the most supportive sectors of the national economy.

The 8 banks

The list of the eight banks that have disclosed their financial data includes: Emirates NBD, Mashreq, Dubai Commercial, Emirates Islamic, Abu Dhabi Commercial, Abu Dhabi Commercial, Ras Al Khaimah National and Sharjah. Islamic ».

Analysis of the financial statements of the four banks listed on the Dubai Financial Market, which disclosed their results, showed that their profits increased to about 19.05 billion dirhams in 2019, an increase of 34.6% compared to 14.14 billion dirhams in 2018.

At the level of the four banks listed on the Abu Dhabi Stock Exchange, its profits amounted to 18.95 billion dirhams during the past year, a growth of 3.7% compared to 18.273 billion dirhams in 2018.

Top 3

Emirates NBD came first in terms of the value of profits achieved, which amounted to 14.5 billion dirhams at the end of 2019, an increase of 44% compared to the profits for the same period in 2018.

The increase in profits achieved by the bank is due to the increase in operating revenues by about 29%, to reach 22.42 billion dirhams, compared to 17.4 billion dirhams in 2018, in addition to achieving non-recurring profits of 4.39 billion dirhams.

Abu Dhabi Bank ranked first with profits of 12.5 billion dirhams at the end of last year, an increase of 4% compared to the profits for the same period in 2018, while the bank's operating income increased by 4%, to reach 20.25 billion dirhams, compared with 19.45 billion dirhams during 2018.

The profits of Abu Dhabi Commercial Bank, which came third, reached 4.79 billion dirhams in 2019, compared to 4.84 billion dirhams during the same period in 2018.

It is noteworthy that the total profits of all national banks listed in the local financial markets (17 banks), which were achieved during 2018, amounted to 42.61 billion dirhams.

5 billion dirhams the value of letters of credit

The value of the letters of credit issued by the banking system in the UAE to the institutions and companies operating in the UAE amounted to about five billion dirhams during the past year, according to statistics included in the report of the Central Bank on the movement of facilities provided to the economic sectors in the country.

Statistics showed that the total value of letters of credit issued by banks increased to about 104.765 billion dirhams at the end of December 2019. The continuous increase in the value of bank facilities through letters of credit is an indication of the continued activity of non-oil economic sectors during the past year. According to the financial standards, the letter of credit presented by the banks is considered a written commitment to pay that is issued by the buyer's bank (the importer).

The issuing bank guarantees, according to these letters, that the buyer pays the obligation in a specific currency to the seller in return for the seller supplying the goods that were agreed to be supplied and the conditions agreed upon between the two parties.

It is clear from tracking the movement of banks in issuing letters of credit to institutions and companies that the total balance of this item reached 103 billion dirhams during the first quarter of 2019, then rose to about 106 billion dirhams during the second quarter of the same year. During the third quarter, the institutions resorted to paying their obligations in exchange for letters of credit obtained from the banks, which led to a decrease in the balance of the value of letters to the level of 101.475 billion dirhams, before the rise in the fourth quarter of the year and returned to 104.765 billion dirhams.

14.5

Billion dirhams profits of Emirates NBD end of 2019.