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00:00 The banking sector is linked to the economic sector.
00:04 We expect that this year the UAE economy will reach 5%.
00:10 If we reach 5%, the banking sector will benefit from a growth of 7% to 8%.
00:17 There is a double benefit for the banking sector.
00:22 Thank God, there is a diversification in income sources.
00:27 The banking sector has been able to overcome all international challenges over the years.
00:35 It has maintained its support for the UAE economy.
00:41 It has also developed in digital transformation.
00:45 The digital transformation that the banking sector is leading in the UAE is a major transformation.
00:55 This encouragement has also come from the central bank.
01:00 It has allowed us to have many agreements in digital transformation and services.
01:06 You also mentioned that all this development will reflect the profitability of the banking sector during the loan period.
01:13 In terms of the results of the work of 14 or 13 banks,
01:18 which are ranked in the UAE markets for the first quarter,
01:21 we have seen a profit of 23 billion dirhams.
01:25 In 2023, we had a previous meeting with you,
01:28 and the profit was more than 50%.
01:31 What do we expect from the profits this year?
01:34 Last year was exceptional in all respects.
01:40 I hope this year will continue to be the same.
01:45 The increase in profits compared to the first quarter of 2023 and 2024
01:52 is approximately 25%.
01:56 I hope this will continue.
01:59 If we maintain the profits from last year,
02:03 because we have a 9% tax this year,
02:10 we will increase the tax by 9%.
02:15 We may talk about the banking sector and its benefits from development,
02:22 and also its indicators,
02:24 but in terms of the details, the quality of the assets,
02:27 how the currency is growing under these high rates,
02:32 and also in comparison to the depository currency,
02:35 the loans and growth rates,
02:38 the capital adequacy rate,
02:40 how do you view these indicators?
02:42 The capital adequacy rate is considered one of the highest rates.
02:46 We are in the middle of 17.5%,
02:50 which is much more than the central bank's requirements, which is 12%.
02:55 So, thank God, the rate is excellent.
02:58 Banks have the ability to increase this rate if necessary,
03:05 because it will reduce the distribution of profits.
03:09 So, the rate is increasing.
03:11 I think that last year and this year,
03:16 we are going through the best period to increase the debt.
03:19 Banks and investors have become more aware,
03:27 and the types of information we get have increased.
03:36 This information is enough to make a decision to support this sector.
03:42 I'm Hal Cotar.