Banks to post 20% rise in Q1 income

Banks to post 20% rise in Q1 income. (EB FILE)

Twenty-four national banks are set to unveil a 20 per cent rise in net income in the first quarter of 2010.

The financial results are projected to improve thanks to higher fees on operations and lower provisions against non-performing loans, said a senior analyst.

Another said the increase was due to a rise in oil prices, which has benefited the local economy.

"According to my information, the UAE banks' combined net income is nearly 20 per cent higher than that in the fourth quarter of 2009…. As for the first quarter of 2009, there might be a slight rise, but I would rather say [there is] stability," said Humam Al Shamma, financial analyst at the Abu Al Fajr Securities.

He attributed the quarterly growth to what he described as a decision by most banks to scale down their non-performing loan provisions.

 

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