UAE loans grew 2.5% in September, Central Bank reports
UAE loans grew by 2.5 per cent in September according to data from the Central Bank, as low interest rates and an expanding economy spurred borrowing.
Total bank loans grew to Dh1.38 trillion including non- performing loans at the end of September, up from Dh1.35tn at the end of August, according to data released by the Central Bank yesterday.
The UAE’s largest banks last month all reported a surge in lending for the third quarter of the year.
National Bank of Abu Dhabi reported an 8.9 per cent rise in loans and advances during the three months to September, with similar increases reported by UNB (7 per cent), FGB and Emirates NBD (both 6 per cent).
“Banking sector liquidity has improved significantly since the global financial crisis in 2008, reflected in a decline in net loan to deposit ratio, which fell below 90 per cent in August from 109.8 per cent in September 2008,” said Alp Eke, senior economist at NBAD.
Banks, however, were still cautious in terms of expanding their lending activity, he added, noting that year-on-year loan growth net of non-performing loans (6.37 per cent year-on-year in August) was still below the growth in deposits (11.86 per cent in August).
Total bank assets grew to Dh2.31tn at the end of September, a monthly increase of 1.7 per cent and a year on year increase of 21.16 per cent.
Total bank deposits slipped by 0.5 per cent to Dh1.41tn in September. Resident and non-resident deposits fell by Dh6.4 billion and Dh1.1bn respectively during the month, according to the country’s official news agency Wam.
Follow The National’s Business section on Twitter
Published: November 10, 2014 04:00 AM