On Wednesday, UAE’s Abu Dhabi Commercial Bank (ADCB) and First Abu Dhabi Bank (FAB) refute reports stating plans of a merger, the former commenting that the report was ‘unsubstantiated and unfounded’.
“ADCB is successfully implementing a five-year strategy and has been updating the market through regular disclosures, including the Bank’s website, annual report, and quarterly reports. In line with our commitment to best practice governance and transparency, ADCB publishes all material information related to the Bank through the Abu Dhabi Securities Exchange in a timely manner,” it said in a statement on Wednesday.
The UAE’s banking sector has been performing very well, even during the pandemic period.
Professional services firm Alvarez & Marsal (A&M) on Wednesday said the profitability of the UAE’s banking sector recovered significantly in 2021 as the economy continued to bounce back from Covid-19. Overall, the banks have performed well on key income categories related to the markets, which continue to show elevated activity.
The UAE Banking Pulse for FY 2021 released by A&M noted that aggregate net income increased substantially by 48.6 percent year-on-year to Dh37.8 billion, mainly driven by higher operating income along with lower impairments.
In conclusion, the UAE banks are still remaining wary of creating new loans in 2021, despite the good situation of high liquidity. It is said that the banks are most likely to hold reserves that are way above their risk profile, given the current credit trends.
