Assets of four largest national banks hit Dhs2.36 trillion mark

Abeer Abu Shamala

The total value of assets of the four largest national banks in the country increased by about 10 per cent by the end of the first nine months of this year, to reach Dhs2.36 trillion, compared to Dhs2.14 trillion at the end of the same period in 2019.

The Dubai Islamic Bank (DIB) achieved the highest increase in the total assets, up by 29.1 per cent during the mentioned period, to reach Dhs299.3 billion, compared to Dhs231.8 billion at the end of September 2019. While, the First Abu Dhabi Bank (FAB), the largest bank in terms of the value of assets at the state level, showed an increase of 16.2 per cent, bringing its total assets value to about Dhs955.15 billion by the end of the third quarter of 2020, compared to Dhs821.97 billion at the end of September 2019.

The assets of the Emirates NBD grew during the same period by 1.3 per cent to Dhs692.14 billion, compared to Dhs683.3 billion at the end of the third quarter of 2019. The growth rate in the Abu Dhabi Commercial Bank’s total assets during that period reached 1 per cent touching Dhs409.26 billion, compared to Dhs405.1 billion by end of the third quarter of last year.

In the meantime, the net profits of eight national banks during the first nine months of this year reached about Dhs20.68 billion with a decline of 36.2 per cent compared to the profits for the same period last year, which saw Dhs32.42 billion as profits. According to an analysis of the financial statements of these banks conducted by “Al Khaleej”, the profits for the third quarter of this year decreased by about 40 per cent compared to the third quarter of 2019, bringing the total value of their quarterly profits to Dhs7.01 billion compared to Dhs11.69 billion recorded in the third quarter of last year. The impairment provisions for the eight banks increased by about 103 per cent during the first nine months of 2020 to Dhs16.6 billion, compared to Dhs8.2 billion for the same period in 2019. At for the quarterly level, the increase in provisions in the third quarter of this year was 29 per cent less than the third quarter of 2019, and the value of the quarterly allocations to the eight banks reached Dhs4.4 billion in the third quarter of 2020, compared to Dhs3.42 billion in the third quarter of last year. The eight banks are “Emirates NBD”, “First Abu Dhabi Bank”, “Dubai Islamic Bank”, “Abu Dhabi Commercial Bank”, “Sharjah Islamic Bank”, “National Bank of Ras Al Khaimah”, “Dubai Commercial Bank” and “National Bank of Umm Al Quwain”.

Meanwhile, First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest and safest financial institutions, has become the first bank in the Middle East to fully digitise the account opening process for SMEs through the BASHER portal.

The Government of the United Arab Emirates represented by The Department of Proactive Services - Ministry of Possibilities (MOP) launched BASHER to simplify the process of starting a business within 15 minute without having to submit any documents or conduct any visits to a customer center. Basher offers a unique digital experience to explore the market, set up your business and obtain businesses license and all supporting documents in simple steps allowing investors to start their business immediately. FAB has been working with the government entities over the past few months to provide innovative solutions that complement BASHER services through virtually opening a corporate bank account within 24 hours without having to fill any forms. This innovative initiative is considered to be the first of its kind in the region.

 Sara Al Binali, EVP, Head of Business Banking at FAB, said: “We continually seek to provide our customers with innovative solutions which help them grow their businesses and plan ahead with ease. This latest solution that we have developed in collaboration with our government partners will expand BASHER’s services providing SMEs across the UAE with a smooth and virtual experience when opening a business bank account. That being said, our journey towards digital customer engagement is ongoing and on a continual thrive to develop innovative & convenient solutions for the entrepreneurs and SMEs.”

Salil Ahuja, SVP, Head of Business Banking Value Proposition at FAB, said: We are proud to associate with the launch of this integrated solution of ‘Digital signature authentication’ and a seamless, paperless full-fledged SME Digital account. Our collaboration with MOP and TRA is a testimony of the fact to support government initiatives and thereby accelerate the growth of SMEs.

FAB recently launched a number of innovative digital solutions for consumers and merchants through its mobile wallet payit, in addition to finalising a number of key partnerships with businesses and government entities across the UAE to support the growth of digital financial services. The bank also continues to play an integral role in supporting the UAE’s economic recovery and growth plans.