Revealed: Top 10 banks in the UAE

The UAE once again has the largest domestic banking sector in the Gulf region, with a 38 per cent share of the region’s total in 2018, according to Gulf Business‘ annual list of the Top 50 biggest GCC banks.

In the UAE, bank loans increased by a higher 4.3 per cent year-on-year to Dhs1.534 trillion in 2018. Bank deposits increased to Dhs1.756 trillion, up 7.9 per cent in 2018. As a result, sector liquidity improved and the loans to customer deposits ratio fell to 87 per cent. The UAE’s banking sector assets rose by 6.8 per cent in 2018, higher than the region. Growth was also aided by a rise in investments.

The large UAE banks recorded steady loan asset quality. However, the smaller banks in the country are struggling with asset quality issues related to the SME problem of a few years ago.

The UAE federal government is expected to boost spending in 2019 to spur stronger economic activity, while the Dubai government is likely to ramp up spending on infrastructure ahead of Expo 2020, which will require increased financing from private contractors. This is expected to provide some boost to the construction sector, which has suffered from slower growth in recent quarters owing to declining real estate prices.

The smaller contracting companies are particularly vulnerable, and this has impacted lending portfolios of some of the smaller banks in the country. Both Abu Dhabi and Dubai have introduced measures to bring in more tourists and these seem to have strengthened business conditions in this critical sector.

Region’s largest bank successful first full year following merger

First Abu Dhabi Bank (FAB) is the largest by assets, equity and net profit. The bank is of a size where it can compete regionally and internationally. FAB is looking to drive growth in core home market sectors and is also focusing on serving UAE corporates with international ambitions as well as support international companies operating in the UAE. It is investing in distribution capabilities and focusing on cross- selling wealth management products and services. FAB’s assets rose by 11 per cent to $203bn in 2018.

Looking ahead

Overall, 2018 was a good year for the major banks in the Gulf (the UAE, Bahrain, Kuwait, Oman and Saudi Arabia) region, which collectively performed better than the previous year. For 2019, the banking sector’s performance should remain steady. The outlook remains subject to some geopolitical uncertainties in the region with increased tensions with Iran and other challenges.

TOP 10 BANKS IN THE UAE
(Based on total assets of listed banks at the end of 2018)

1. First Abu Dhabi Bank
Assets in 2018 ($000): 202,593,301
Assets in 2017 ($000): 182,131,308
Growth percentage (2017-2018): 11.24
2018 net profit ($000): 3,270,081
Return on assets (ROA) in 2018: 1.61%

2. Emirates NBD
Assets in 2018 ($000): 136,221,820
Assets in 2017 ($000): 128,062,152
Growth percentage (2017-2018): 6.38
2018 net profit ($000): 2,733,635
Return on assets (ROA) in 2018: 2.01%

3. Abu Dhabi Commercial Bank
Assets in 2018 ($000): 76,185,771
Assets in 2017 ($000): 72,149,005
Growth percentage (2017-2018): 5.60
2018 net profit ($000): 1,317,705
Return on assets (ROA) in 2018: 1.73%

4. Dubai Islamic Bank
Assets in 2018 ($000): 60,899,036
Assets in 2017 ($000): 56,448,954
Growth percentage (2017-2018): 7.89
2018 net profit ($000): 1,338,522
Return on assets (ROA) in 2018: 2.2%

5. Mashreq
Assets in 2018 ($000): 38,097,361
Assets in 2017 ($000): 34,083,375
Growth percentage (2017-2018): 11.78
2018 net profit ($000): 560,913
Return on assets (ROA) in 2018: 1.47%

6. Abu Dhabi Islamic Bank
Assets in 2018 ($000): 34,084,921
Assets in 2017 ($000): 33,563,191
Growth percentage (2017-2018): 1.56
2018 net profit ($000): 680,677
Return on assets (ROA) in 2018: 2%

7. Commercial Bank of Dubai
Assets in 2018 ($000): 20,174,665
Assets in 2017 ($000): 19,170,721
Growth percentage (2017-2018): 5.24
2018 net profit ($000): 316,398
Return on assets (ROA) in 2018: 1.57%

8. RAK Bank
Assets in 2018 ($000): 14,343,572
Assets in 2017 ($000): 13,214,582
Growth percentage (2017-2018): 8.55
2018 net profit ($000): 248,473
Return on assets (ROA) in 2018: 1.73%

9. Noor Bank
Assets in 2018 ($000): 13,808,657
Assets in 2017 ($000): 11,616,809
Growth percentage (2017-2018): 18.87
2018 net profit ($000): 163,723
Return on assets (ROA) in 2018: 1.19%

10. Sharjah Islamic Bank
Assets in 2018 ($000): 12,182,273
Assets in 2017 ($000): 10,423,750
Growth percentage (2017-2018): 16.87
2018 net profit ($000): 138,956
Return on assets (ROA) in 2018: 1.14%