DUBAI: The profits of large UAE banks will reach pre-pandemic levels in the next 12-18 months, according to a report published by Moody's Investors Service.
The analysis argues the ongoing recovery is the result of consumer confidence as macroeconomic conditions in the UAE are rebounding, particularly after the relaxation of COVID-19 restrictions, a strong vaccination roll-out, and recovering oil prices.
The report also noted that First Abu Dhabi Bank PJSC, Emirates NBD PJSC, Abu Dhabi Commercial Bank, and Dubai Islamic Bank PJSC reported a combined net profit of $8 billion, up 31 percent from the previous year.
“The four largest banks’ profitability rebounded to near pre-pandemic levels in 2021, largely reflecting robust non-interest income and softening loan loss provisions. We expect a full return to pre-pandemic levels of profitability in the next 12-18 months,” said report author Nitish Bhojnagarwala, a vice-president and senior credit officer at Moody's.
