According to the financial safety indicators for the second quarter issued by the Central Bank

The net income of banks grows by 14.8%, and records 31 billion dirhams during the second quarter

• The net income of banks in the country during the first quarter recorded 27 billion dirhams.

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• Mustafa Al-Rikabi: “The demand for borrowing has begun to recover from the repercussions of (Covid-19), and the banking sector has strong liquidity.”

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The banking sector in the country continued to recover from the repercussions of the Corona virus (Covid-19) pandemic, as the net income of banks operating in the country during the second quarter of this year amounted to approximately 31 billion dirhams, a growth of 14.8% compared to the first quarter of 2021, which recorded 27 billion dirhams. dirhams, and a growth of 20% compared to the same period in 2020, which recorded 25.8 billion dirhams.

Finally, the financial safety indicators for the second quarter issued by the Central Bank showed that the rate of return on the assets of the banking sector, amounting to three trillion and 87 billion dirhams, rose in the second quarter of this year by 1%, equivalent to 30.87 billion dirhams, compared to a return of 0.9 % during the first quarter of this year.

demand recovery

The banking expert, Mustafa Al-Rikabi, said that the demand for borrowing began to recover from the repercussions of the Corona virus (Covid-19) pandemic since the beginning of this year, and it also improved to a greater degree in the second quarter of this year, which contributed to an increase in operational operations from financing and lending to both individuals. or companies.

He added that the rise in the net income of banks also reflects the increase in the return on assets and investments that banks enter, usually in bonds or securities with a high rating, that provide good income, in addition to the main operational activities of each bank.

Al-Rikabi stated that the period that accompanied the spread of the pandemic, and until about the end of last year, was accompanied by a reservation in granting loans, and a tightening of the conditions, which was offset by weakness in the demand itself, pointing out that this situation changed a lot, starting from the beginning of 2021, when demand was active, especially from Companies whose work has been affected, and want to make up for what they missed, as well as individuals who postponed any requests to buy a car, build a house, or others, until the pandemic recedes.

strong fluidity

Al-Rikabi continued: “The banking sector in the UAE has strong liquidity, and the banks did not stop hiring them even during the pandemic year, as they focused on investing, purchasing certificates of deposit in exchange for interest, or other channels that guarantee profits.”

He stressed that in the midst of the “Corona” pandemic, banks in the Emirates achieved profits, albeit at lower rates than usual, but almost all banks succeeded in achieving reasonable profits, and no losses were recorded in any quarter for more than a year, which is considered the most difficult for economies. all global.

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