5.41 PM Friday, 29 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:56 06:10 12:26 15:53 18:37 19:52
29 March 2024

National banks’ 9-month provisions at Dh11.9 bn

Published
By Staff

UAE national banks boosted loan loss provisions to around Dh11.9 billion in the first nine months of 2011 as most of them pursued plans to bolster their position following the 2008-2009 financial crises, a newspaper said on Tuesday.

Dubai-based Emirates NBK, the largest bank in the Middle East by assets, made the largest provisions among the country’s 18 listed national banks during that period, Albayan Arabic language daily said, citing banks’ balance sheets.

The provisions this year are nearly 16.6 per cent above the Dh10.2 billion allocated by the 18 banks to non-performing loans (NPL) provisions in the first nine months of 2010, the paper said.

Provisions by banks listed in Abu Dhabi’s bourse stood t Dh6.335 billion in the first nine months of 2011 while the rest was made by banks listed in Dubai.

A breakdown showed Emirates NBD made the highest provisions of nearly Dh3.99 billion compared with Dh2.99 billion in the first nine months of 2010.

In Dubai, it was followed by Mashreq Bank, at Dh846.7 million in the first nine months of 2011, and Emirates Islamic Bank at around Dh189 million.

In Abu Dhabi, the government-controlled Abu Dhabi Commercial Bank (ADCB) emerged with the highest provisions, allocating around Dh1.84 billion in the first nine months of 2011 against Dh1.3 billion in the same period of 2010.

Provisions by First Gulf Bank stood at Dh1.24 billion in the first nine months of 2011 and those by National Bank of Abu Dhabi at Dh1.017 billion.

High provisions were also made by Abu Dhabi Islamic Bank, at Dh546 million, Sharjah Islamic Bank at Dh378 million and Union National Bank at Dh302 million.

Banks in the UAE and other Gulf oil producers have been locked in a massive provisioning drive at the expense of lending after they were jolted by the 2008 global financial turmoil and regional debt default problems in 2009.