Wednesday , June 23 2021

Moody's today confirms its stable outlook for the UAE banking sector

Shein WW

Moody's maintains a stable perspective for the UAE banking sector

Moody's kept stable prospects for the UAE banking sector.

Moody's said that prospects reflect the gradual recovery of the economy as well as the strength of bank capital, the resilience of profitability and the power of financing.

The combination of high oil production, government spending on infrastructure in Dubai and the stimulating packages of Abu Dhabi are fueling economic growth, the agency said.

Moody's expected growth in GDP would reach 2.2% in 2018 and 2.8% in 2019, following a slowdown in 2017 growth.

The economy of recovery will stimulate growth in credit, she said

"The effect of the loans will gradually stabilize, as the economy of the recovery and flexibility of large borrowers will ensure that loans with bad forms of tuition between small and medium-sized companies and individual borrowers," Moody's vice president of finance Mick Kapia said.

The agency predicted that profitability improvement would back up the level of equity, suggesting that average tangible capital could be at the sector level of 14 to 15 percent of risk-weighted assets over the next 12 to 18 months.

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