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112914
Mon, 03/22/2010 - 16:04
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https://oananews.org//node/112914
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UAE banks boost capital by 8.4% in two months
Abu Dhabi, Mar 22, 2010 (WAM)- UAE banks boosted their shareholders' equity by nearly 8.4 per cent in the first two months of 2010 to maintain their position as the largest capitalised banking system in the Arab World, UAE Central Bank data showed.
The increase is in line with Central Bank instructions for banks to bolster their financial position after many financial institutions in the country and other Gulf oil producers were jolted by the global fiscal turmoil and regional debt defaults. From about Dh231.4 billion at the end of 2009, the consolidated capital base of the UAE's 24 national and 28 foreign banks expanded to Dh251bn at the end of February, an increase of Dh19.6bn.
The rise followed a record annual increase of nearly Dh78bn in the banks' combined capital through 2009, which is regarded by analyst as one of the most difficult financial periods for banks in the UAE and other Gulf nations. The increase meant that UAE banks are still maintaining the largest capital base in the Arab banking system after overtaking Saudi Arabia's 12 banks in terms of capital, assets and loans at the end of 2007.
The Central Bank gave no figures on the UAE banks' capital adequacy, but financial analysts said they expected it to remain above 19 per cent at the end of February on the grounds there was a slight rise of about Dh3bn in the banks' total assets to Dh1,510bn at the end of last month. The collective adequacy of banks hit a record high of 19.2 per cent at the end of 2009. Bankers said capital adequacy was far higher in some banks, adding that almost all the banks operating in the UAE are now far ahead of the Central Bank's defined floor of 11 per cent in mid 2009 and 12 per cent next June.
"This increase in the UAE banks' capital is a very positive development along with the sustained rise in provisions… it strengthens confidence in the banking sector of investors, depositors and shareholders," said Ziad Dabbas, financial advisor at the government-controlled National Bank of Abu Dhabi.
The UAE banks, like other GCC banks, are maintaining a tight lending policy adopted since the global crisis, with total credit edging up by only about Dh2bn in February to reach Dh1,017.5bn from about Dh1,015.2bn at the end of January. – Emirates Bulletin 24|7
The increase is in line with Central Bank instructions for banks to bolster their financial position after many financial institutions in the country and other Gulf oil producers were jolted by the global fiscal turmoil and regional debt defaults. From about Dh231.4 billion at the end of 2009, the consolidated capital base of the UAE's 24 national and 28 foreign banks expanded to Dh251bn at the end of February, an increase of Dh19.6bn.
The rise followed a record annual increase of nearly Dh78bn in the banks' combined capital through 2009, which is regarded by analyst as one of the most difficult financial periods for banks in the UAE and other Gulf nations. The increase meant that UAE banks are still maintaining the largest capital base in the Arab banking system after overtaking Saudi Arabia's 12 banks in terms of capital, assets and loans at the end of 2007.
The Central Bank gave no figures on the UAE banks' capital adequacy, but financial analysts said they expected it to remain above 19 per cent at the end of February on the grounds there was a slight rise of about Dh3bn in the banks' total assets to Dh1,510bn at the end of last month. The collective adequacy of banks hit a record high of 19.2 per cent at the end of 2009. Bankers said capital adequacy was far higher in some banks, adding that almost all the banks operating in the UAE are now far ahead of the Central Bank's defined floor of 11 per cent in mid 2009 and 12 per cent next June.
"This increase in the UAE banks' capital is a very positive development along with the sustained rise in provisions… it strengthens confidence in the banking sector of investors, depositors and shareholders," said Ziad Dabbas, financial advisor at the government-controlled National Bank of Abu Dhabi.
The UAE banks, like other GCC banks, are maintaining a tight lending policy adopted since the global crisis, with total credit edging up by only about Dh2bn in February to reach Dh1,017.5bn from about Dh1,015.2bn at the end of January. – Emirates Bulletin 24|7
