{"id":98276,"date":"2024-11-26T00:00:00","date_gmt":"2024-11-26T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/"},"modified":"2024-11-26T00:00:00","modified_gmt":"2024-11-26T00:00:00","slug":"uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/","title":{"rendered":"UAE banks\u2019 performance in 3Q 2024 indicate ample liquidity and continued growth -Kamco"},"content":{"rendered":"

UAE banks had a solid 3Q 2024 compared to their GCC counterparts<\/strong>, taking the lead in customer deposits, net interest margins, and return on equity, while achieving the lowest cost-to-income ratio across the region, according to a Kamco Invest report (pdf)<\/a>. <\/p>\n

Customer deposits grew by 3.1% q-o-q to USD 828 bn in 3Q 2024<\/strong>, while lending jumped 3.4% q-o-q during the quarter. The UAE\u2019s loan-to-deposit ratio was the second lowest in the GCC, reaching 69.3% after Bahrain\u2019s 66.1%, marking a 30 bps increase compared to 2Q 2024. This figure indicates that UAE banks \u201cremain in a comfortable position to finance future growth\u201d in terms of liquidity, according to the report.<\/p>\n

The UAE had the second highest gross credit figures in the region<\/strong>, after Saudi Arabia, with AED 2.1 tn in gross credit \u2014 a marginal increase driven by a 0.3% increase in domestic credit that offset the 1.5% decrease in foreign credit.<\/p>\n

Total bank revenues rose 3.9% q-o-q<\/strong>, with net interest income increasing 1.8% q-o-q and net interest margins coming in at 3.42% \u2014 the highest in the region, though still marginally decreasing from 3.47% in 2Q 2024. The solid margins indicate \u201cample liquidity that allows UAE banks to capitalize on the tightening interest rate cycle with more modest asset growth,\u201d Kamco said. Non-interest income grew 7.5% q-o-q.<\/p>\n

Increase in expenses was offset by a cost-to-income ratio improvement:<\/strong> UAE-listed banks recorded the highest q-o-q growth in operating expenses across the region with a 7.7% q-o-q jump to USD 4.6 bn in 3Q 2024. However, this figure was offset by reporting the biggest q-o-q decline in cost-to-income ratios, amounting to 37.6% compared to 38.2% in 2Q 2024.<\/p>\n

Loan impairments more than doubled to reach USD 800 mn in this quarter <\/strong>\u2014 the highest increase across the GCC. Still, the cost of risk ratio \u2014 which is the ratio of yearly provisions to average loans \u2014 came in at 0.5%, which is the same value as the average ratio for the GCC banking sector.<\/p>\n

Emirati banks achieved a 16.8% return on equity ratio<\/strong>, dropping slightly by 10 bps compared to 2Q 2024, followed by Saudi Arabia and Qatar at 12.8%. <\/p>\n

REGIONAL PICTURE- <\/p>\n

GCC banks reported a record high of USD 2.1 tn in gross loans in 3Q 2024<\/strong>, increasing 10.1% y-o-y and 3.1% q-o-q, backed by growth across all regional markets. Operating expenses rose for the second consecutive quarter by 4.1% q-o-q to USD 13.1 bn, which was driven by higher expenses in four out of six GCC country aggregates and which weighed on the aggregate net income of GCC banks. Net income saw a three-quarter low growth of 0.4% q-o-q. <\/p>\n

The aggregate net interest income also rose to a record level of USD 22.1 bn in <\/strong>this quarter<\/strong>, while the return on equity remained high in comparison to the last few years at 13.6%.<\/p>\n","protected":false},"excerpt":{"rendered":"

The country took the lead in net interest margins and return on equity<\/p>\n","protected":false},"author":1,"featured_media":98277,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1618],"tags":[159,7,331],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-98276","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-banking","tag-enterpriseam-uae","tag-interest-rates","wpautop","entry"],"acf":{"mongo_id":"ed5b8b81-742d-4478-a475-93c3bdbc61c2","order":"7","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/11\/2390.jpg","photo_position":"above","homepage_title":"","full_issue_title":"UAE banks\u2019 performance in 3Q 2024 indicate ample liquidity and continued growth -Kamco","related_issue":[98264],"teaser":"The country took the lead in net interest margins and return on equity","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/11\/.a81a18ac-dc92-4a07-9b69-5c706b3ad1e4.mp3"},"yoast_head":"\nUAE banks\u2019 performance in 3Q 2024 indicate ample liquidity and continued growth -Kamco - UAE<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UAE banks\u2019 performance in 3Q 2024 indicate ample liquidity and continued growth -Kamco\" \/>\n<meta property=\"og:description\" content=\"The country took the lead in net interest margins and return on equity\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/\" \/>\n<meta property=\"og:site_name\" content=\"UAE\" \/>\n<meta property=\"article:published_time\" content=\"2024-11-26T00:00:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2024\/11\/2390.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"UAE banks\u2019 performance in 3Q 2024 indicate ample liquidity and continued growth -Kamco\",\"datePublished\":\"2024-11-26T00:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/\"},\"wordCount\":443,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2024\/11\/2390.jpg?fit=%2C&ssl=1\",\"keywords\":[\"banking\",\"EnterpriseAM UAE\",\"interest rates\"],\"articleSection\":[\"Banking\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/\",\"url\":\"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/\",\"name\":\"UAE banks\u2019 performance in 3Q 2024 indicate ample liquidity and continued growth -Kamco - UAE\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2024\/11\/2390.jpg?fit=%2C&ssl=1\",\"datePublished\":\"2024-11-26T00:00:00+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/#primaryimage\",\"url\":\"https:\/\/i0.wp.com\/ent.news\/2024\/11\/2390.jpg?fit=%2C&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/ent.news\/2024\/11\/2390.jpg?fit=%2C&ssl=1\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/enterpriseam.com\/uae\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"UAE banks\u2019 performance in 3Q 2024 indicate ample liquidity and continued growth -Kamco\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/#website\",\"url\":\"https:\/\/enterpriseam.com\/uae\/\",\"name\":\"UAE\",\"description\":\"The State of the Nation\",\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/enterpriseam.com\/uae\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/#organization\",\"name\":\"UAE\",\"url\":\"https:\/\/enterpriseam.com\/uae\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ent.news\/internal\/42998.svg\",\"contentUrl\":\"https:\/\/ent.news\/internal\/42998.svg\",\"caption\":\"UAE\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\",\"name\":\"enterpriseam admin\",\"sameAs\":[\"http:\/\/enterpriseam.testing.projectsarea.com\"],\"url\":\"https:\/\/enterpriseam.com\/uae\/author\/enterpriseam\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"UAE banks\u2019 performance in 3Q 2024 indicate ample liquidity and continued growth -Kamco - UAE","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/","og_locale":"en_US","og_type":"article","og_title":"UAE banks\u2019 performance in 3Q 2024 indicate ample liquidity and continued growth -Kamco","og_description":"The country took the lead in net interest margins and return on equity","og_url":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/","og_site_name":"UAE","article_published_time":"2024-11-26T00:00:00+00:00","og_image":[{"url":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/2390.jpg?fit=%2C&ssl=1","type":"","width":"","height":""}],"author":"enterpriseam admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"enterpriseam admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/#article","isPartOf":{"@id":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/"},"author":{"name":"enterpriseam admin","@id":"https:\/\/enterpriseam.com\/uae\/#\/schema\/person\/ca597032db7e4db868359c123cec256d"},"headline":"UAE banks\u2019 performance in 3Q 2024 indicate ample liquidity and continued growth -Kamco","datePublished":"2024-11-26T00:00:00+00:00","mainEntityOfPage":{"@id":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/"},"wordCount":443,"publisher":{"@id":"https:\/\/enterpriseam.com\/uae\/#organization"},"image":{"@id":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/2390.jpg?fit=%2C&ssl=1","keywords":["banking","EnterpriseAM UAE","interest rates"],"articleSection":["Banking"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/","url":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/","name":"UAE banks\u2019 performance in 3Q 2024 indicate ample liquidity and continued growth -Kamco - UAE","isPartOf":{"@id":"https:\/\/enterpriseam.com\/uae\/#website"},"primaryImageOfPage":{"@id":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/#primaryimage"},"image":{"@id":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/2390.jpg?fit=%2C&ssl=1","datePublished":"2024-11-26T00:00:00+00:00","breadcrumb":{"@id":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/#primaryimage","url":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/2390.jpg?fit=%2C&ssl=1","contentUrl":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/2390.jpg?fit=%2C&ssl=1"},{"@type":"BreadcrumbList","@id":"https:\/\/enterpriseam.com\/uae\/2024\/11\/26\/uae-banks-performance-in-3q-2024-indicate-ample-liquidity-and-continued-growth-kamco\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/enterpriseam.com\/uae\/"},{"@type":"ListItem","position":2,"name":"UAE banks\u2019 performance in 3Q 2024 indicate ample liquidity and continued growth -Kamco"}]},{"@type":"WebSite","@id":"https:\/\/enterpriseam.com\/uae\/#website","url":"https:\/\/enterpriseam.com\/uae\/","name":"UAE","description":"The State of the Nation","publisher":{"@id":"https:\/\/enterpriseam.com\/uae\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/enterpriseam.com\/uae\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/enterpriseam.com\/uae\/#organization","name":"UAE","url":"https:\/\/enterpriseam.com\/uae\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/uae\/#\/schema\/logo\/image\/","url":"https:\/\/ent.news\/internal\/42998.svg","contentUrl":"https:\/\/ent.news\/internal\/42998.svg","caption":"UAE"},"image":{"@id":"https:\/\/enterpriseam.com\/uae\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/enterpriseam.com\/uae\/#\/schema\/person\/ca597032db7e4db868359c123cec256d","name":"enterpriseam admin","sameAs":["http:\/\/enterpriseam.testing.projectsarea.com"],"url":"https:\/\/enterpriseam.com\/uae\/author\/enterpriseam\/"}]}},"featured_image_src":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/2390.jpg?resize=600%2C400&ssl=1","featured_image_src_square":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/2390.jpg?resize=600%2C600&ssl=1","author_info":{"display_name":"enterpriseam admin","author_link":"https:\/\/enterpriseam.com\/uae\/author\/enterpriseam\/"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/2390.jpg?fit=%2C&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/posts\/98276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/comments?post=98276"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/posts\/98276\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/issue\/98264"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/media\/98277"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/media?parent=98276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/categories?post=98276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/tags?post=98276"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/brand?post=98276"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=98276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}