UAE banks’ earnings to decline in 2016– report

UAE banks will see negative earnings growth this year as low oil prices take their toll and liquidity continues to tighten, according to a report by Standard & Poor’s. Experts suggest that the slowdown will continue through to 2017. They note that unlike the global financial crisis in 2010, strong oil prices won’t get liquidity flowing again. Meanwhile, five UAE banks are rated stable by S&P because of their healthy liquidity, good loan loss coverage and strong capitalisation levels. They include National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, Mashreq Bank, Sharjah Islamic Bank and National Bank of Fujairah. The report also adds that the UAE's banking sector is still one of the most profitable among emerging markets.