Banks’ interest income rises 10.6% to Dh52 billion in 6 months

Banks’ income from the interest margin imposed on various financings reached a record level during the first half of this year, reaching 52 billion dirhams, compared to 47 billion dirhams at the end of the same period last year, an increase of five billion dirhams, equivalent to a growth rate of 10.6%.

Interest income constitutes the largest share of total bank revenues, as this item has witnessed continuous growth over the past three years, thanks to high interest rates on financing and the abundance of liquidity in the banking sector as a result of increased deposits.

The Financial Safety Report for the second quarter of this year, published by the Central Bank yesterday, also showed positive figures on the level of liquid assets, which reached for the first time AED 801.5 billion at the end of last June, compared to AED 666.6 billion at the end of the first half of last year, an increase of AED 134.9 billion and a growth rate of 20%.

Non-performing debts or doubtful debts declined by the end of the second quarter of this year to AED 111.8 billion, compared to AED 131 billion at the end of the same period last year, a decrease of AED 19.2 billion, equivalent to a negative change of 14.6%, which is the highest percentage of decline recorded by doubtful debts in the past two decades, reflecting the quality of credit granting, the success of banks in adhering to credit inquiries, and not granting the customer financing that exceeds his ability to repay.

Continuing the positive financial safety indicators in the banking sector during the second quarter of this year, the return on assets rose to 2.1% by the end of June, compared to 1.8% at the end of the same period last year, with a growth rate of 0.3%.

14.6% decrease in doubtful debts by the end of the second quarter.

Central Bank: Tender for cash bills

Abu Dhabi – WAM

The Central Bank announced yesterday a tender for monetary bills, including four issues of Treasury Bonds “M-BILL”, the first for a period of 28 days, for up to 1,500 million dirhams, the second for 84 days for up to 3,500 million dirhams, the third for 112 days, for up to 2,000 million dirhams, and the fourth for 280 days for up to 4,000 million dirhams.

The release date will be tomorrow, September 18, while the due date for the first issue will be October 16, 2024, the second issue will be December 11, 2024, the third issue will be January 8, 2025, and the fourth issue will be June 25, 2025.

It is noteworthy that the total number of tenders offered by the Central Bank for monetary bills amounts to about 26 tenders during the current year.

Imposing a financial penalty on a bank operating in the country

Abu Dhabi – Emirates Today

The Central Bank imposed a financial penalty on one of the banks operating in the country, pursuant to Articles (89) and (137) of Federal Decree-Law No. (14) of 2018, regarding the Central Bank and the organization of financial institutions and activities and its amendments, and Article (14) of Federal Decree-Law No. (20) of 2018, regarding combating money laundering, combating the financing of terrorism and the financing of illegal organizations.

The Central Bank stated in a statement that the value of the financial penalty amounted to five million dirhams, and directed that the Board of Directors of the bank’s headquarters outside the country be notified and appropriate corrective measures be taken.

The Central Bank, through its regulatory and supervisory duties, works to ensure that all banks, their owners and employees comply with the laws in force in the country and the bank’s regulations, in order to maintain the transparency and integrity of the banking sector.