UAE banks report 8.4% increase in shareholders’ equity

UAE banks report 8.4% increase in shareholders’ equityOffering clue of strong economic fundamentals in the coming times, the shareholder equity of UAE banks surged around 8.4 per cent during the first two months of the year 2010. The Central Bank had earlier urged lenders to strengthen their economic position that was impacted due to global slowdown and rising defaults.

The banks maintained their top position in the terms of capital in the Arab World as indicated by data revealed by the Central Bank of UAE. The consolidated capital base of 24 national and 28 foreign banks surged to Dh251billion at the end of February as compared to Dh231.4 billion at the end of 2009.

The banks did well despite tough conditions of the economic market due to global slowdown and still ahead of Saudi Arabia's 12 banks in terms of capital, assets and loans.

Ziad Dabbas, financial advisor at the government-controlled National Bank of Abu Dhabi said, "This increase in the UAE banks' capital is a very positive development along with the sustained rise in provisions."