UAE – Mubasher: The UAE’s four largest banks have reported a growth in their profits for the first half of 2019, which totaled AED 19 billion ($5.3 billion), according to a report by Moody's Investors Service Middle East Limited.

The four banks are First Abu Dhabi Bank (FAB), Emirates NBD, Abu Dhabi Commercial Bank (ADCB), and Dubai Islamic Bank (DIB), the report highlighted.

Net profits of the banks for H1-19 were backed by asset growth and robust non-interest income, as well as a one-time gain at Emirates NBD, Moody’s said.

Total assets of these banks account for over two-thirds of the UAE's banking sector assets, the report added.

Mik Kabeya, AVP-Analyst at Moody's, said: "The banks' combined net interest income increased slightly, buoyed by solid lending growth."

"And non-interest income rose materially on foreign-exchange trading revenue and increased investment banking activity," Kabeya added.

Furthermore, Moody's projected the banks’ profitability for the full-year 2019 to fall 1.7% from 1.8% in 2018.

As for operating expenses, the ratings agency expected it would rise owing to technology investments and expansion-related spending, while provisioning charges are likely to grow due to pressure in the property and hospitality sector and the retail segment amid a soft non-oil economy.