The net income of UAE banks declined by 45% in the first quarter of this year to 27.1 billion dirhams, compared to (49.46 billion dirhams) in the first quarter of last year, and the decline reached 41% compared to the fourth quarter of 2019 (45.85 billion dirhams).
According to data published by the financial safety indicators published by the Central Bank, the ratio of non-performing loans to the banking sector increased to total loans, to 6.9%, compared to 6.5% in the last quarter and 5.7% in the first quarter of last year.
The value of non-performing loans, according to the Central Bank’s data, reached 120.58 billion dirhams at the end of the first quarter of this year out of a total of 1.74 trillion dirhams of loans.
The value of non-performing loans in the sector amounted to 111.65 billion dirhams at the end of the last quarter of last year, and about 93.9 billion dirhams at the end of the first quarter of 2019.
The ratio of the capital to the assets measured by risk (solvency) of the banking sector fell to 16.9% at the end of the first quarter of this year, compared to 17.7% in the last quarter and 17.9% in the first quarter of 2019.
According to the indicators, the solvency of the first part of the capital decreased to 15.8% in the first quarter of this year, compared to 16.5% in the last quarter and 16.6% in the first quarter 2019.
Source (Al-Khaleej Newspaper-UAE, Edited)
