U.S. Markets closed

Abu Dhabi Commercial Bank -- Moody's: Profits to remain steady into 2019 for largest-four UAE banks

Dubai, August 15, 2018 -- Higher net interest income and lower provisions drove profits higher for the four largest banks in the United Arab Emirates (UAE) in Q2 2018 with profitability likely to remain stable into 2019, says Moody's Investors Service in a report published today. "We expect core profitability for the large UAE banks to remain broadly stable over the next 12-18 months, as interest earnings hold steady at current levels, and as the decline in provisioning charges reverses due to softening business confidence," says Nitish Bhojnagarwala, Vice President -- Senior Credit Officer at Moody's. The big four banks -- First Abu Dhabi Bank PJSC (FAB, Aa3/Aa3 Stable, a3), Emirates NBD PJSC (ENBD, A3/A3 Stable, ba1), Abu Dhabi Commercial Bank (ADCB, A1/A1 Stable, baa3) and Dubai Islamic Bank PJSC (DIB, A3/ A3 Stable, ba2) -- reported combined net profit of AED8.0 billion (US$2.2 billion) in Q2 2018, up 21% year on year.