Latest news with #bankingsector
Bloomberg
3 days ago
- Business
- Bloomberg
ECB Has Found ‘Equilibrium' on Rates, Prices, Growth, Stournaras Says
European Central Bank Governing Council member Yannis Stournaras says it seems the euro area has reached an equilibrium when it comes to inflation, banking-sector developments and economic growth.
Khaleej Times
11-06-2025
- Business
- Khaleej Times
Top 10 UAE banks' Q1 net income jumps 8.4% to Dh22.2b
The UAE's top 10 listed banks have posted a strong first quarter marked by healthy income growth, cost optimisation, and strategic repositioning —despite a backdrop of global economic uncertainty and regional interest rate adjustments. According to the latest UAE Banking Pulse from Alvarez & Marsal (A&M), aggregate net income of the 10 banks for the quarter ending March 2025 jumped by 8.4 per cent quarter-on-quarter (QoQ) to Dh 22.2 billion. This performance was powered largely by a substantial 59.3 per cent drop in impairment charges and an 18 per cent surge in fee and commission income. Though net interest income (NII) contracted by 2.1 per cent due to narrowing margins, overall profitability improved: return on equity (RoE) rose to 18.6 per cent, and return on assets (RoA) climbed to 2.1 per cent. The banks also reported a notable 3.6 per cent QoQ growth in loans and advances, largely led by corporate and wholesale lending, which increased by 5.1 per cent. On the deposit side, a 5.8 per cent QoQ rise—propelled by a robust 7.6 per cent increase in current and savings accounts (CASA)—outpaced loan growth. Consequently, the loan-to-deposit ratio (LDR) eased to 74.7 per cent, indicating bolstered liquidity across the sector. The Q1 snapshot reveals a sector exercising prudent cost control. Operating expenses dipped by 7.8 per cent, pushing the cost-to-income (C/I) ratio down by 234 basis points to 28.2 per cent—its lowest level in four quarters. Digital transformation initiatives and process automation appear to be playing a key role in boosting operational efficiency. Despite interest margin pressures — with net interest margin (NIM) shrinking by 15 basis points to 2.52 per cent — the sector's resilience is reflected in its improving asset quality. The cost of risk (CoR) fell to 0.29 per cent, while the non-performing loan (NPL) ratio dropped to 3.2 per cent, supported by healthier loan recoveries and a stronger lending profile. Coverage ratios also improved, climbing to 110.5 per cent, offering additional buffer against potential shocks. Strategic consolidation appears to be back in motion. Emirates NBD has initiated a full acquisition of Emirates Islamic, a move seen as a precursor to regional expansion. This signals a renewed confidence among top-tier banks in exploring inorganic growth opportunities amidst a more stabilised operating environment. The top 10 listed banks assessed in the report include First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank, Dubai Islamic Bank, Mashreq Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, National Bank of Fujairah, National Bank of Ras Al-Khaimah, and Sharjah Islamic Bank. These institutions collectively shape over 80 per cent of the UAE's banking activity, providing a reliable proxy for sectoral trends. 'UAE banks have entered 2025 on solid footing. Despite margin pressures from rate cuts, we saw strong fee income and reduced impairments lifting overall profitability. This performance underlines the sector's adaptability and strategic focus,' Asad Ahmed, managing director and head of Financial Services at A&M, observed. Sam Gidoomal, managing director and head of A&M's Financial Services in the Middle East, added, 'With evolving financial dynamics, our enhanced M&A analysis helps C-suite leaders understand valuation shifts and peer performance, setting the stage for sharper strategic decisions.' Key performance indicators reinforce the strength of the quarter. While yield on credit declined from 11.9 per cent to 10.9 per cent amid softer lending rates, the cost of funds also improved—dropping to 3.9 per cent from 4.4 per cent—helping to cushion margin pressure. Meanwhile, non-interest income rose to 35.7 per cent of total operating income, reflecting diversification efforts beyond traditional lending. From a capital perspective, the sector remains well-buffered with a capital adequacy ratio (CAR) of 16.6 per cent—comfortably above regulatory minimums—despite a slight decline from the previous quarter. This gives banks ample room to support future loan growth, M&A activity, and dividend payouts. This upbeat performance comes as the broader UAE banking industry continues to benefit from macroeconomic stability, steady government reforms, and a thriving business environment. The Central Bank of the UAE forecasts GDP growth of around 5 per cent in 2025, with non-oil sectors driving expansion—further supporting credit demand. According to data from the UAE Banks Federation, total banking sector assets crossed Dh 4.2 trillion as of March 2025, up nearly 12 per cent year-on-year. Lending to SMEs and green finance initiatives have also seen a notable uptick, as banks align with the nation's sustainability goals and entrepreneurship agenda.
LBCI
05-06-2025
- Business
- LBCI
In Lebanon, IMF sees ‘some progress' on reforms but urges more external support
Lebanon has made progress on reforms needed to revive its economy but still has key steps to take and will need external funding on concessional terms, the International Monetary Fund said on Thursday after a week of meetings in Beirut. Lebanon's new president and prime minister, both of whom took office in early 2025, pledged to prioritize reforms and secure an IMF financing agreement - but the country now faces additional needs with the widespread destruction and displacement caused by Israel's military campaign last year. "The authorities have made some progress recently, including the amendment of the Bank Secrecy Law and submission of a new bank resolution law to Parliament," the IMF's Lebanon mission chief, Ramirez Rigo, said in a written statement. Rigo said his mission held "productive discussions" with Lebanese officials, including restoring the viability of the banking sector, fiscal and debt sustainability, and enhancing anti-money laundering and terrorism financing measures. He said Lebanon's medium-term fiscal framework should support the restructuring of Eurobond debts, which Lebanon defaulted on in 2020, leading to a sovereign default on its $31 billion of outstanding international bonds. "Given Lebanon's substantial reconstruction needs, limited fiscal space, and lack of capacity to borrow, the country will require significant support from external partners on highly concessional terms," the IMF statement said. The World Bank estimated Lebanon's recovery and reconstruction needs following Israel's military campaign at $11 billion. But the U.S. has said it opposes any reconstruction funds to Lebanon until Hezbollah "is disarmed." Reuters
Zawya
04-06-2025
- Business
- Zawya
CBUAE issues commemorative coins to mark the Golden Jubilee of DIB
Abu Dhabi: The Central Bank of the UAE (CBUAE) has issued 7,000 silver commemorative coins to mark the Dubai Islamic Bank's (DIB) Golden Jubilee and to honor its achievements in the banking sector since its establishment in 1975. The issuance includes 2,000 coins of 50 grams and 5,000 coins of 20 grams. The obverse of the coin features the inscription "50 Years of Progress", the mnemonic descriptor of this occasion in Arabic and English, signifying the 1975-2025 period, along with the name "Dubai Islamic Bank" in both languages. The reverse side displays the nominal value of "50 dirhams" in Arabic, encircled by the inscription "Central Bank of the UAE' in both Arabic and English. The issuance of the coin comes as part of DIB celebration of its anniversary and the launch of its journey full of growth, development, and achievements over fifty years, making it a prominent financial institution in the UAE that provides innovative banking services to individuals and companies, in line with the economic and developmental aspirations of the country. The commemorative coins will be formally handed over to DIB and will not be available for sale to public through CBUAE or DIB. H.E. Saif Humaid Aldhaheri, the CBUAE's Assistant Governor for Banking Operations and Support Services, said: 'The Central Bank issues these commemorative coins that embody DIB's fifty-year journey of contributions and successes and its effective role in supporting the national economy. This issuance reflects the central bank's support to document the prominent institutional achievements that are integral to the financial sector's history, and it highlights the continuous efforts to enhance trust and financial stability in the UAE.' Dr. Adnan Chilwan, Group Chief Executive Officer of DIB, said: 'We are deeply honoured by the Central Bank of the UAE's gesture in adopting the DIB initiative and issuing commemorative coins to mark our 50-year legacy. More than symbolic tribute, it reflects the enduring partnership between DIB and the nation's financial ecosystem, and our shared commitment to building a resilient, inclusive, and forward-looking economy. As we celebrate five decades of pioneering Islamic finance, this recognition reinforces our resolve to lead with purpose, inspire innovation, and shape the future of banking in the UAE and beyond.'
Bloomberg
03-06-2025
- Business
- Bloomberg
UK's Ofwat Set for Supervisory Role in Regulatory Overhaul
The UK water regulator needs to take a more supervisory role akin to the banking sector in order to help stem the industry's worst crisis in decades. Ofwat currently relies heavily on 'comparability' — or benchmarking water companies against one another to assess efficiency and justify customer bills. A more supervisory approach would allow the regulator to be more reactive and possibly intervene earlier when issues arise, according to interim findings from the Independent Water Commission published on Tuesday.
