Bad loan provisions surged across UAE’s four biggest banks last year: Moody’s

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ARAB NEWS
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Tue, 2021-03-09 19:37

DUBAI: The four biggest UAE banks reported a 43 percent jump in bad loan provisions last year according to a report from Moody’s.
The credit ratings agency expects UAE bank profitability to remain under pressure in 2021 as provisions increase further.
“The increase in loan loss charges, was related to the pandemic and to the weakening of some large corporate names in the domestic market prior to the pandemic,” said the report. “Although the four banks’ loan loss buffers remain solid, we expect higher provisioning during 2021 due to further asset quality deterioration.”

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