DUBAI, 3 February 007 - The year 2006 was a mixed one for banks in the UAE. As the aggregate profits of Abu Dhabi-based national banks grew by 5.7 percent to AED7.4 billion, the profits of Dubai-based banks grew 9 percent to AED6.7 billion. However, the aggregate net profits of four Sharjah-based banks dropped 32.5 percent to AED854.3 million in 2006 against AED1.2 billion in the corresponding period in 2005.
Separately, the profits of National Bank of Abu Dhabi and Union National Bank fell by 18 percent and 12.5 percent respectively.
Abu Dhabi Islamic Bank achieved the highest growth rate, 66 percent to AED571 million compared with AED344 million in 2005, followed by First Gulf Bank by 45.5 percent to AED1.5 billion and Abu Dhabi Commercial Bank by 11.7 percent to AED2.1 billion.
Although the profits of the National Bank of Abu Dhabi dropped by 18 percent, the bank topped the five banks with net profits of Dhs2.15 billion while the profits of the Union National Bank dropped by 12.5 percent to AED1 million.
The assets of the National Bank of Abu Dhabi rose by 18.8 percent to exceed the AED100-billion mark. The assets of Abu Dhabi Commercial Bank rose by 40.3 percent to AED81 billion. First Gulf Bank assets rose by 82 percent to AED47.7 billion compared. Union National Bank assets grew by 18.9 percent to AED41.5 billion. Abu Dhabi Islamic Bank assets grew by 63.8 percent to AED36.2 billion.
Four banks - National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, First Gulf Bank and Abu Dhabi Islamic Bank - recorded a growth in loans and finances by 39.5 percent to AED168.9 billion.
Abu Dhabi Commercial Bank topped the list with a volume of loans exceeding AED62 billion, up by 48.2 percent, while First Gulf Bank registered the highest growth rate of 92 percent to AED25 billion.
In Dubai, the total assets of the six banks - Emirates Bank International, National Bank of Dubai, Dubai Islamic Bank, Mashreqbank, Commercial Bank of Dubai and Arab Emirates Investment Bank - jumped 41.3 percent to AED305 billion.
The total assets of Abu Dhabi's five banks - National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, Union National Bank, First Gulf Bank and Abu Dhabi Islamic Bank - grew by a record 36 percent to AED307.3 billion.
Emirates Bank International recorded the highest volume of profits at AED1.8 billion, up by 9.2 percent.
The total assets of the six banks hit AED305 billion compared with AED216 billion in 2005. The total assets of the Emirates Bank International jumped by 61.2 percent to AED95.8 billion.
The customers' deposits of Dubai's national banks grew by 32.3 percent to AED190.5 billion by the end of 2006. The customers' deposits of the Emirates Bank International grew by 51.3 percent to AED49.8 billion. Dubai Islamic Bank deposits grew by 43.2 percent to AED47.7 billion. National Bank of Dubai by 22.3 percent to AED45.4 billion. Mashreqbank deposits grew by 13 percent to AED33.9 billion. Commercial Bank of Dubai deposits grew by 29.3 percent to AED13.7 billion.
In Sharjah, the total assets of Sharjah's four banks - Bank of Sharjah, Sharjah Islamic Bank, InvestBank and United Arab Bank - rose 25.5 percent to AED26.5 billion by the end of 2006.
The operating profits fell 4.3 percent to AED1 billion by the end of 2006 against AED1.1 billion by the end of 2005. Shareholders' equity grew by 1.5 percent to AED6.4 billion, up from AED6.3 billion at the end of 2005.
According to banking sources, most national banks were able to overcome the sharp slumps of the stock markets last year by diversifying their income sources, depending mainly on core banking operations and benefiting from the current momentum of most sectors, particularly the real estate sector, by financing major real estate projects.