Dhs13.5 billion in loans benefit from repayment deferrals in UAE

Source

Gulf Today - Business

Source link

https://www.gulftoday.ae/business/2026/07/30/cbuae-maintains-base-rate-at-365-per-cent

Published

2026-07-30 10:32:00

Discovered by ProcIntel

2026-07-31 10:17:10

Category

GCC Spotlight

Geography

UAE

Organisations

—

Review status

Pending

Record type

REAL

Summary

The comprehensive proactive support package to enhance the resilience of financial institutions, adopted by the Central Bank of the UAE (CBUAE) in March 2026, enabled repayment deferrals on loans totalling Dhs13.5 billion for affected bank customers.A total of 135,031 customers benefited from the measure, as part of the CBUAE’s prudential approach to strengthening the resilience of the banking sector and proactively managing asset quality.According to data issued by the CBUAE on Thursday, the value of loans benefiting from instalment repayment deferrals as of 30th July was distributed as follows: Dhs9.1 billion for large corporates, Dhs2.4 billion for small and medium-sized enterprises, and Dhs2 billion for individuals.The number of beneficiaries included 127,753 individuals, 6,198 small and medium-sized enterprises, and 1,080 large corporates.The data confirmed the continued strength of the banking sector, with assets rising by 12.5 per cent, loans by 18.1 per cent and deposits by 14 per cent as of 30th June, 2026, compared with the same period in 2025, reflecting the sector’s continued resilience and growth.In a related context, the UAE banking sector achieved its best asset quality levels by the end of the second quarter of 2026, supported by a significant decline in the stock of non-performing loans as a result of targeted supervisory measures taken by the CBUAE, reflecting the strength of the financial system. The non-performing loan ratio declined to 2.8 per cent by the end of the second quarter of 2026, its lowest level on record, compared with 8.2 per cent in 2020, representing a decrease of 5.4 percentage points.The net non-performing loan ratio also fell to a record level of 1.3 per cent, compared with 3.6 per cent in 2020, a decrease of 2.3 percentage points.The stock of non-performing loans declined to Dhs76 billion by the end of the second quarter of 2026, compared with Dhs84 billion in the first quarter of this year and Dhs142 billion in 2020.The CBUAE explained that this improvement resulted from a package of regulatory and supervisory measures, including intensive inspections and comprehensive asset quality reviews, enhanced dialogue with industry representatives and risk officers, and the implementation of credit risk management regulations and standards.The measures also included developing guidelines for the write-off and recovery of non-performing loans in line with international best practices and standards.Mashreq posts Dhs4.048 billion net profit in H1 2026: Mashreq Bank posted net profit after tax of Dhs4.048 billion during the first half of 2026, up 17 per cent compared with the same period last year.Profit attributable to the owners of the parent increased by 16 per cent to Dhs3.955 billion, while earnings per share reached Dhs19.2 compared with Dhs16.4 in the first half of 2025. The bank recorded a record profit before tax of Dhs4.805 billion during the first half, an increase of 18 per cent year-on-year, while operating income reached Dhs6.826 billion.Net interest income and income from Islamic financing rose by 7 per cent to Dhs4.225 billion, while non-interest income increased by 17 per cent to Dhs2.601 billion, raising its contribution to 38 per cent of total operating income.Fees and commission income increased by 11 per cent to Dhs716 million, supported by strong growth in transaction banking and trade finance activities.Net investment income surged by 57 per cent to Dhs335 million, driven by favourable fair value movements in the investment portfolio and realised gains from investment securities, while insurance, foreign exchange and other income rose by 13 per cent to Dhs1.551 billion.Operating expenses amounted to Dhs2.144 billion as the bank continued to invest in generative artificial intelligence initiatives, digital infrastructure, platforms and talent supporting its growth, while maintaining a cost-to-income ratio of 31 per cent.In terms of asset quality, the non-performing loan ratio remained stable at 0.9 per cent despite loan growth, while the coverage ratio increased to 271 per cent compared with 210 per cent in June 2025.The balance sheet recorded strong growth, with total assets rising 25 per cent year-on-year to a record Dhs365.7 billion. Customer deposits increased by 28 per cent to Dhs227.2 billion, while loans and advances to customers grew by 26 per cent.Abdul Aziz Al Ghurair, Chairman of Mashreq, said the UAE once again demonstrated its resilience during the first half of the year despite heightened geopolitical uncertainty, affirming that the country’s economic fundamentals remained strong.He said the bank’s results reflect its resilience and the effectiveness of its long-term strategy.Ahmed Abdelaal, Group Chief Executive Officer, said the bank achieved record results despite geopolitical and economic challenges, noting that growth in deposits and lending, the higher contribution of non-interest income and the continued strength of asset quality underscore the resilience of Mashreq’s diversified business model.He added that the bank enters the second half of the year focused on disciplined growth, efficient capital allocation, and continued investment in technology, artificial intelligence, data and control frameworks.WAM

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