By: Thabet Shehata

Dubai – Mubasher: UAE banks listed on the Dubai Financial Market (DFM) have recorded a net profit growth by 50.4% during the fiscal year 2014 compared to figures from 2013, while Q4-14 profits surged 54% against Q4-13.

Net profits for seven UAE banks reached AED 12.11 billion in FY14 ($3.3 billion) against AED 8.05 billion ($2.2 billion) in FY13. Similarly profits for Dubai banks during Q4-14 reached around AED 3.09 against AED 2 billion in Q4-13, according to a Mubasher report.

Bankers had said that they expected UAE bank profits for 2014 to see their highest historical record amid a general improvement in the UAE economy and a decline in the global economic crisis.

The UAE banking sector has achieved strong growth rates in 2014 owing to direct support from high liquidity levels added to growing confidence in the UAE’s economic sector, the annual report by the UAE Banks Federation previously said.

According to a report by Mubasher, Emirates NBD alone accounted for 42.4% of total net profits of Dubai-based banks in 2014, as well as of 39.4% of Q4-14 profits.

The bank’s financial statements showed a net profit leap by 57.8% to AED 5.14 billion against AED 3.26 billion in 2013. Meanwhile, Q4-14 profits reached AED 1.2 billion against AED 672.82 million during the same period the year before, registering a massive growth by 82.3%.

Sheikh Mohammed bin Saeed Al Maktoum commented on the Bank’s financials, saying that 2014 was a highly important year for the bank owing to the achievements carried out during that year.

Coming in second place was Dubai Islamic Bank (DIB) in terms of profit volume, as financials showed a net profit of AED 2.8 billion, making up 28% of Dubai banks’ total profits, against AED 1.7 billion in FY13, marking a 63.2% profit growth year-on-year. Moreover, Q4-14 profits rose by 43.6% to AED 743.74 million compared to AED 518 million during the same period in 2013.

Emirates Investment Bank (EIB) reported the least profits amongst its counterparts, as net profits reached AED 46.23 million during the year compared to AED 36.23 million the year before, registering a profit rise by 27.6%.

EIB’s net profits for the fourth quarter of 2014 increased by 6.3% to AED 5.28 million against AED 5.6 million in Q4-13.

On the dividend distributions level, a report by Mubasher showed that all banks have announced their dividend distributions whether in terms of cash dividends, stock dividends or both, with the exception of Emirates Islamic Bank, which has not announced any distributions yet.

Emirates NBD announced a cash dividend representing 35% of capital, whereas cash distributions for DIB and Bank Mashreq reached 40%.

The Commercial Bank of Dubai (CBD) announced a dividend of 25% added to 25% bonus shares, while Ajman Bank and EIB recommended a stock dividend of 5% and 7.7%, respectively.

Translated by: Nada Adel Sobhi