The United Arab Emirates top 10 banks reported a significant rebound in their profits in the second quarter of 2022, compared to the same period one year ago, according to a report on the sector.
Increased profits in banks including First Abu Dhabi Bank, Emirates NBD and Abu Dhabi Commercial Bank, were driven by a rise in profitability of so-called interest income – interest earned from a bank’s assets – according to consulting firm Alvarez & Marsal.
“While clearly inflation is now a global concern, we foresee a lesser impact of this in the region, against the backdrop of firm oil prices, increased consumer confidence and strong economic activity,” Asad Ahmed, A&M Managing Director and Head of Middle East Financial Services said in a statement.
Total interest income of the banks “grew drastically” by nearly 20 percent in the second quarter of 2022, compared to the same period in 2021, according to the report.
So called non-interest income – from things such as customer, transaction and annual fees – went up by 15 percent during the same time period, the UAE Banking Pulse report added.
Other banks analyzed in the report include the Dubai Islamic Bank, Mashreq Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, National Bank of Fujairah, National Bank of Ras Al-Khaimah and Sharjah Islamic Bank.