Abu Dhabi – Mubasher: the agency “S&P Global” said in a recent report The economic support plan aimed at the Central Bank of the Emirates helped the system during the period of the pandemic, limiting the increase in non-performing loans.
According to the report, the economic environment began to improve thanks to rising oil prices and the recovery of the non-oil sector.
He added that improving operating conditions led to an increase in loan growth in the first half of the year 2202 compared to a year 2021 although this could be mitigated by an increase in interest rates in the second half.
The agency expected that the trend towards higher interest rates and lower cost of risk would continue to support banks’ profitability and stable asset quality.
He indicated that increases in non-performing loans will continue to be subdued as the economy improves and business activity picks up.
And the agency went on in its report, that the construction business sector and some small and medium-sized enterprises will take longer to recover and will mainly contribute to the formation of NPLs, noting that thereby the extension of some measures of the plan economic support aimed at weak sectors in the second half of the year will help. 2022 Give them more time to recover.
At the end of last June, third-phase loans as a percentage of total loans amounted 5.6%as compared to 6.1% at the end of a year 2021 The percentage of loans for the second phase was 6.0% In the first half of the year.
To trade and invest in the Gulf stock exchanges, click here.
Applications:
The first of its kind in the region. UAE introduces new residence permit (video graphics)
Infographic .. What are the most requested jobs and qualifications in the UAE in 2023?
–
–