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ABU DHABI / WAM
UAE-based banks received AED21 billion in commission income in 2018, with national banks getting 82.8 percent thereof, i.e. AED17.4 billion, according to statistics revealed by the Central Bank of the UAE.
The foreign banks’ commission income amounted to AED3.4 billion, with the remaining amount claimed by branches of Gulf banks operating in the country. It’s noteworthy that there are 60 banks operating in the UAE.
In the meantime, the eligible liquid assets reached AED414 billion at the end of 2018, comprising of CBUAE Certificates of Deposits, AED138 billion, statutory reserves at AED120 billion, domestic and foreign debt securities AED107 billion, and cash and current accounts at AED49 billion, according to CBUAE’s Financial Stability
Report – 2018.
The net profits of UAE national banks exceeded AED42.6 billion in 2018, a growth of 12 percent on year.
The report indicates that the operating efficiency of the UAE banking system improved as reflected in the cost-to-income ratio. The overall cost-to-income ratio decreased to 35.9% in 2018, compared to 39.1% in 2017.
The improvement in the cost efficiency during 2018 was contributed primarily by lower operating expenses, which decreased by 7.0%. Mergers in the Abu Dhabi banking sector also contributed to the improvement in cost efficiency.