The profits of the Emirati Banking System increased in 2021 to around pre-pandemic levels, and reached 35.7 billion dirhams, which reflects an improvement in business sentiment and economic conditions and the lifting of restrictions related to the Corona virus. As a result, the return on assets increased to 1.2%, the return on shareholders' equity improved to 8.2%, and the cost-to-income ratio improved to 36.4%. With the economic recovery gaining momentum, profitability is expected to improve further in 2022.
Total operating income grew moderately in 2021 by 1.2% YoY. The increase was driven by improvements in other operating income by 19.6% YoY, mainly due to growth in income from trading and fees and commissions.
The UAE banking system continued to maintain adequate capital levels, and remained profitable overall during the pandemic, and this recovery in profitability supported the stability of the capital position, and the total capital adequacy ratio of the banking system reached 17.1%.
The total remittances received through exchange offices in the UAE amounted to 20.6 billion dirhams, and the largest sub-segment was 9.2 billion dirhams, followed by family transfers 6.1 billion dirhams, other transfers 4.6 billion dirhams, and investment transfers 662.8 million dirhams. The total incoming transfers through money exchange business increased by 15.7% compared to the previous year.
Source (Emirati Gulf Newspaper, Edited)
