Emirates NBD is in the lead, followed by First Abu Dhabi Bank
15.6 billion dirhams, net income of 15 banks from fees and commissions
Emirates NBD's net income from fees and commissions amounted to 3.8 billion dirhams.
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Awatef Al-Harmoudi: “The past year witnessed the beginning of recovery from Corona, so it is natural that we witness an increase in the proceeds of fees and commissions.”
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15 national banks achieved a net income from fees and commissions worth 15.6 billion dirhams, last year, with an increase of 1.9 billion dirhams, and a growth of 13.8%, compared to the outcome of 2020, which recorded 13.7 billion dirhams, according to a monitoring conducted by «Emirates Today», based on financial data. Audited 15 banks out of 18 listed in the country's money market, where the data of three banks were not available, until the completion of the monitoring.
According to the figures, Emirates NBD ranked first in terms of income from fees and commissions, registering three billion and 836 million dirhams, followed by First Abu Dhabi Bank with a value of three billion and 35 million dirhams, and Abu Dhabi Commercial Bank with a value of one billion and 899 million dirhams.
Ajman Bank
At the most developed level, Ajman Bank came in the first place with a rate of 116%, as the net fees and commissions it received increased from 49 million dirhams in 2020 to 106 million dirhams in 2021, while Mashreq Bank came in second with an annual growth rate of 29%. Abu Dhabi Commercial Bank came third with 22.5%.
On the other hand, the item of fees and commissions decreased in four banks, respectively: Umm Al Quwain Bank by 40.5%, then Commercial International (17%), Abu Dhabi Islamic (3.4%), and finally Emirates Islamic Bank (0.8%).
Eleven banks succeeded in achieving positive growth rates in fees and commissions, with rates ranging between 0.5% and up to 29%, with the exception of Ajman Bank, whose fee and commission growth rate jumped by 116%.
Fees and commissions
For her part, the banking expert, Awatef Al-Harmoudi, said that “the proceeds of fees, commissions and currency exchange, is one of the main sources of banks’ income, in addition to the return on financing, and all fees for individuals are determined by the Central Bank, within the personal loan system, so banks cannot increase them or Imposing new types of them,” explaining that “the banks compete to reduce them or make them free in order to attract customers to open new accounts or take financing.”
And she indicated that "the last year witnessed the beginning of recovery from the Corona pandemic, and the return of demand for financing by individuals and companies, especially in the last quarter, so it is natural that the collection of fees and commissions will witness an increase in parallel with that."
Al-Harmoudi continued, "The banks provide a service for every fee or commission they impose, and the Central Bank obligates the banks to inform the customer of all fees and commissions, before opening the account or other services," pointing out that "each bank deals with the fee item according to its policy, meaning that the bank Whoever wants to increase his profits, applies it in full, but whoever wants to market his products, he reduces them or exempts them,” indicating that “corporate transaction fees are determined according to the market situation, due to the lack of regulation by the Central Bank, and banks take into account in imposing market risks, for example During the Corona period, it was high due to the increase in the risks of granting financing to companies in that period, unlike what is happening now, as banks began to (tolerant) somewhat, in fees in a desire to increase financing.
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