UAE bank H1 profits rise by almost 40%

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CASH BOOST: Profits for UAE banks have increased by nearly 40 percent. (Getty Images)

The net profits of UAE banks rose by nearly 40 per cent in the first half of 2008 and the income will likely hit a record through 2008, official figures show.

The net earnings of the country's 24 national banks and 28 foreign units stood at $4.3 billion in the first half of this year compared with $3.1 billion in the first half of 2007, the Central Bank figures revealed.

The earnings accounted for nearly 65 per cent of the total net profits achieved during 2007, reported Emirates Business on Sunday.

Economists said the surge in the first half of this year was a result of a sharp rise in the banks' credits to the booming realty sector as well as a sustained growth in their investments.

"There has been a slight effect of the US Subprime crisis but it has not stifled their profit growth," Mohammed Al Asumi, an economist, told the paper.

Last year, the banks' net profits leaped by nearly 24 per cent to $6.6 billion from around $5.3 billion in 2006.

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Posted by MOHAMMED KALEEMULLAH, DUBAI, U.A.E. on Sunday 31 August 2008 at 21:02 UAE time


This much profit in these times only Banks in this region can only post. It's not a surprise. I feels Banks are growing at the cost of customers inconvenience & squeezings. The cost of living is going high and standard of living is going down, where Banks are the first to pounce on any opportunity to make money. Mostly No human considerations, no feelings surviving on the formula how to make 2 + 2 = five? Under no strict control or supervision and no customer redressal forums, they will continue to fool people and make more money by hidden charges, interests, credit cards, loans and what not? I feel their services form only a small portion and the rest is how to multiply money?

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