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22651
Sun, 10/05/2008 - 12:48
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https://www.oananews.org//node/22651
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Emirates NBD, NBAD and ADCB biggest lenders in 2007
Dubai, Oct 5, 2008 (WAM) - The UAE's top three banks emerged as the biggest lenders in 2007 with one of them maintaining its credit to deposit ratio within limits according to a report in “Emirates Business 24|7”.
Emirates NBD, National Bank of Abu Dhabi (NBAD) and Abu Dhabi Commercial Bank (ADCB) accounted for nearly 40 per cent of the total credits of Dh760 billion provided by the UAE banks by the end of last year, according to new figures by the Emirates Banks Association.
Their combined loans and advances stood at about Dh308bn while their total deposits were estimated at Dh271bn at the end of 2007.
Emirates NBD, which was created in late 2007 from the merger of National Bank of Dubai and Emirates Bank, provided a staggering Dh153.01bn, largely exceeding its deposits of Dh124.7bn at the end of 2007. NBAD's credits stood at Dh79.7bn but they remained within the allowed 1:1 credit to deposit ratio. ADCB's loans totalled about Dh75.6bn, surpassing its deposits of about Dh57.1bn at the end of 2007.
The figures showed the combined credits of the three banks, the largest in the UAE in terms of assets, accounted for nearly 40.5 per cent of the total credits of nearly Dh760.15bn provided by the country's 52 banks by the end of last year.
Two other major lenders last year were Dubai Islamic Bank (DIB) and HSBC, which extended about Dh65.1bn and Dh50.1bn, respectively. Their deposits stood at Dh62.3bn and Dh65.01bn, respectively.
The figures showed the total credits by the country's 24 national banks and 28 foreign units exceeded their combined deposits of about Dh756.1bn at the end of 2007 and the gap continued to widen through 2008. According to Central Bank figures, the total credits stood at Dh792bn at the end of the first quarter of this year while deposits were estimated at Dh773bn.
At the end of June, loans peaked at Dh893bn while deposits stood at Dh837bn, with the credit to deposit ratio climbing to a record 1.06. The surge in credits in the UAE and other Gulf oil producers followed a sharp growth in the economy because of strong crude prices, high public spending, soaring inflation and an upsurge in construction activity.
Tightening liquidity caused by the strong demand and a global credit crunch triggered by a severe United States financial crisis prompted the UAE Central Bank last week to announce an injection of Dh50bn into the local banking system although the banks have already absorbed nearly Dh70bn in the second quarter of 2008 from their mature certificates of deposits with the Central Bank.
EBA's figures showed national banks were by far the biggest lenders last year, with their total credits standing at Dh628.6bn by the end of 2007, accounting for nearly 82 per cent of the total banking sector's credits. Their deposits of Dh596.7bn also amounted to nearly 79 per cent of the total deposits.
According to the Central Bank, the bulk of the 2007 credits by the UAE banks were channelled into trade, construction, manufacturing and business loans.
Personal loans for business purposes topped the list, with a total Dh110.3bn by the end of 2007. Credits to trade stood at Dh106.2bn while those to construction and industry totalled Dh68.4bn and Dh34bn, respectively. Another favoured target by the banks is personal loans for consumption purposes, which stood at Dh43.4bn.
In terms of assets, Emirates NBD emerged as the largest bank in the UAE and the Arab region, with a total Dh235.4bn at the end of 2007.
Its assets accounted for nearly 18.5 per cent of the combined UAE banking assets of Dh1,273bn, according to EBA. NBAD came second with about Dh139.4bn, ADCB controlled Dh106.2bn while HSBC and Mashreq ranked fourth and fifth in terms of assets.
The surge in the banks' lending activity boosted their pre-tax profits to a record Dh26.68bn during 2007.
Emirates NBD, National Bank of Abu Dhabi (NBAD) and Abu Dhabi Commercial Bank (ADCB) accounted for nearly 40 per cent of the total credits of Dh760 billion provided by the UAE banks by the end of last year, according to new figures by the Emirates Banks Association.
Their combined loans and advances stood at about Dh308bn while their total deposits were estimated at Dh271bn at the end of 2007.
Emirates NBD, which was created in late 2007 from the merger of National Bank of Dubai and Emirates Bank, provided a staggering Dh153.01bn, largely exceeding its deposits of Dh124.7bn at the end of 2007. NBAD's credits stood at Dh79.7bn but they remained within the allowed 1:1 credit to deposit ratio. ADCB's loans totalled about Dh75.6bn, surpassing its deposits of about Dh57.1bn at the end of 2007.
The figures showed the combined credits of the three banks, the largest in the UAE in terms of assets, accounted for nearly 40.5 per cent of the total credits of nearly Dh760.15bn provided by the country's 52 banks by the end of last year.
Two other major lenders last year were Dubai Islamic Bank (DIB) and HSBC, which extended about Dh65.1bn and Dh50.1bn, respectively. Their deposits stood at Dh62.3bn and Dh65.01bn, respectively.
The figures showed the total credits by the country's 24 national banks and 28 foreign units exceeded their combined deposits of about Dh756.1bn at the end of 2007 and the gap continued to widen through 2008. According to Central Bank figures, the total credits stood at Dh792bn at the end of the first quarter of this year while deposits were estimated at Dh773bn.
At the end of June, loans peaked at Dh893bn while deposits stood at Dh837bn, with the credit to deposit ratio climbing to a record 1.06. The surge in credits in the UAE and other Gulf oil producers followed a sharp growth in the economy because of strong crude prices, high public spending, soaring inflation and an upsurge in construction activity.
Tightening liquidity caused by the strong demand and a global credit crunch triggered by a severe United States financial crisis prompted the UAE Central Bank last week to announce an injection of Dh50bn into the local banking system although the banks have already absorbed nearly Dh70bn in the second quarter of 2008 from their mature certificates of deposits with the Central Bank.
EBA's figures showed national banks were by far the biggest lenders last year, with their total credits standing at Dh628.6bn by the end of 2007, accounting for nearly 82 per cent of the total banking sector's credits. Their deposits of Dh596.7bn also amounted to nearly 79 per cent of the total deposits.
According to the Central Bank, the bulk of the 2007 credits by the UAE banks were channelled into trade, construction, manufacturing and business loans.
Personal loans for business purposes topped the list, with a total Dh110.3bn by the end of 2007. Credits to trade stood at Dh106.2bn while those to construction and industry totalled Dh68.4bn and Dh34bn, respectively. Another favoured target by the banks is personal loans for consumption purposes, which stood at Dh43.4bn.
In terms of assets, Emirates NBD emerged as the largest bank in the UAE and the Arab region, with a total Dh235.4bn at the end of 2007.
Its assets accounted for nearly 18.5 per cent of the combined UAE banking assets of Dh1,273bn, according to EBA. NBAD came second with about Dh139.4bn, ADCB controlled Dh106.2bn while HSBC and Mashreq ranked fourth and fifth in terms of assets.
The surge in the banks' lending activity boosted their pre-tax profits to a record Dh26.68bn during 2007.
