Total assets of UAE banks estimated at Dh 3.44 trillion as of May 2022
The UAE Reserve Bank announced that the total assets of financial institutions, consisting of lender approvals, increased by 2.9% from Dh 3.345 trillion at the end of April 2022 to Dh 3.443 trillion at the end of May 2022. Total bank deposits increased by 1.6% from Dh 2.008 trillion at the end of April 2022 to Dh 2.04 trillion at the end of May 2022. The increase in total bank deposits was driven by a 2.0% increase in deposits from residents, masked a 1.2 percent decline in deposits from non-residents.
UAE steps up training of central bank officials
The launch of the certification program comes as the UAE intensifies its efforts to strengthen its anti-money laundering and anti-terrorist financing (AML/CTF) framework to comply with international standards. Twelve UAE National Supervisors have already enrolled in the program’s first cohort. The bank has announced that further cohorts are planned. Khaled Mohamed Balama, the governor of the central bank, said in a statement that “the launch of this intensive programme is part of the Central Bank’s efforts to achieve effective supervision on licenced financial institutions by its examiners and supervisors, which would contribute to the UAE’s financial stability”. The Central bank of the UAE has recently imposed sanctions on a number of financial institutions for having tax compliance policies. In the first half of 2022, the government imposed fines totalling to $11.2 million for AML cases.
Total assets of UAE banks estimated at Dh 3.44 trillion as of May 2022
Dubai-based developer Nakheel is rumoured to be planning a loan of around AED 17 billion (US$4.6 billion) to restructure existing debt. Approached local banking groups such as Dubai Islamic Bank, Emirates NBD and for loans. The banks are also asking regional and global lenders to participate in the deal. Nakheel is the lead developer of other major residential areas in Dubai such as Jumeirah Islands, Jumeirah Park and Al Farjan. Also home to Jumeirah Village Circle, Discovery Gardens, International City, the community’s portfolio has recently attracted attention with new property sales.
SRC signs SR500 million real estate loan with Riyadh Bank
Saudi Real Estate Refinance Company (SRC), wholly owned by Public Investment Fund, has signed an agreement with Riyadh Bank to acquire an SR500 million (US$133.13 million) real estate financing portfolio. The deal between SRC and Riyad Bank is the second largest mortgage refinancing in the UK. Chaired by SRC CEO Fabrice Susini and Riyadh Bank CEO Tarek Al Sadan. “As a result, Saudi citizens are more likely to have access to mortgage solutions that meet their needs, thus achieving the Vision 2030 goal of increasing family home ownership in Saudi Arabia from 47% to over 60% within four years.”
Total assets of UAE banks estimated at Dh 3.44 trillion as of May 2022
HSBC expands its market and securities services division in Abu Dhabi Global Markets (ADGM) with an arrangement custody license for government, institutional and investment management clients. HSBC, which is increasingly focused on Asia to drive income, said all its regions were profitable in the first half. The Lender stated that the earning prospects remain positive based on the current market consensus and continuous credit growth of 2022. Earlier this month, HSBC said its pre-tax profit was stable in the second quarter, with higher earnings and net interest margins offsetting higher expected credit loss burdens amid heightened uncertainty in the global economy.
BisB launches ‘End-to-End’ mobile business account
Bahrain Islamic Bank (BisB) has launched an end-to-end mobile account opening feature for corporate customers via an enterprise mobile application, enabling them to open and manage their accounts electronically. Freeing corporate customers from the hassle of visiting branches and financial centres, the launch of the feature is in line with the bank’s strategy to continuously develop innovative digital financial solutions that enable secure banking operations. To ensure the highest level of security, the Face ID sign-in process requires a copy of the applicant’s ID card as an additional layer of authentication. After confirmation by the bank, the corporate customer can immediately apply for all of BisB corporate products and services and conduct daily financial transactions.
High oil prices increase the profits of GCC banks
Due to the high price of oil, the GCC banks’ bottom lines performed well in the second quarter of this year, with net income and assets reaching all-time highs. A robust q-o-q increase of 4.8% in Q2’s total revenues for GCC banks was driven by higher interest rates after local central banks raised their policy rates in response to US Federal Reserve rate hikes, totalling $24.9 billion. Consequently, net interest income grew strongly by 9.6% to reach $17.1 billion. This rise, however, was somewhat offset by a quarterly reduction in non-interest revenue, which fell by 4.5% and reached $7.7 billion in Q2.
UAE banks help companies increase their rates for sustainability
The UAE Government might potentially introduce credit enhancement incentives for investments backed by the banking industry provide direct funding through designated funds, or both to speed up the scaling up of transition-related projects and activities. Banks are familiar with the tried-and-true project finance framework, which may be used to scale up renewable energy projects. The private sector is responsible for a relatively large portion of the UAE economy, and cannot succeed in this crucial contest unless they accept the need for change and cooperate with the banks. Credit facilities with sustainability/ESG links are a crucial component of this strategy.
