UAE Banks extended nearly DH 7 billion in credit in the first quarter of 2010 and this is being seen as a progressive step in the resumption of full services by all Banks in the United Arab Emirates.
These figures released by the Bank show that there was also a substantial increase in deposits lodged in the regions 24 national banks and 28 foreign financial institutions during the same period as well as a noted slowdown in non-performing loan provisions. At the end of January the total credit extended by the regions 52 financial institutions was recorded to be approximately Dh1,015 billion and by the end of March this figure had burgeoned to approximately Dh1,022billion. This is the highest figure noted for 15 months.
Analysts predict that this situation will improve further during the rest of 2010 and one analyst said that while Banks are in no way abandoning their tight grip on extending credit at present they are cautiously granting more loans and are in a better position now than they have been for quite some time.
These figures all indicate that the Central bank is now in a better financial position and there is going to be a sizeable improvement in shareholder’s equity this year and the banks will now continue to pursue their adjusted policies of increasing their non performing loan provisions and reigning in their loan activities wherever possible. Overall profits for last year were Dh14.87 less than 2008.Paul Holdsworth, Staff Writer, Gulf Jobs Market News