Dubai banks see credit provisions rise 11% in 9M 2016

Dubai-listed banks saw an 11 percent rise in aggregate credit provisions to AED 5.1 billion for the first nine months of 2016, compared to AED 4.5 billion in year earlier period, analysis by Argaam showed.

Commercial Bank of Dubai (CBD) recorded the biggest provisions’ increase of 96 percent year-on-year (YoY) to AED 441.6 million in the nine-month period. Mashreq Bank followed, reporting a 92 percent jump YoY in the 9M provisions to AED 1.3 billion.

In contrast, Dubai Islamic Bank (DIB) and Emirates NBD posted declines in provisions of 11 percent and 26 percent YoY to AED 304 million and AED 2.06 billion respectively during the nine-month period.

Credit provisions at Emirates NBD grew to AED 641.4 million in Q3-2016, compared with AED 632.8 million in Q2. Also, Emirates Islamic Bank (EIB), Commercial Bank of Dubai (CBD), Ajman Bank and DIB have raised their provisions quarter-on-quarter during Q3-2016.

Dubai-listed banks reported a 6 percent year-on-year drop in aggregate consolidated profit to AED 10.48 billion during the first nine months of 2016.