UAE - Mubasher: UAE banks' profitability is expected to remain under pressure in 2021, as pressure on net interest income, their main source of revenue, continues and provisions rise further, according to Moody's Investors Service.

In its recent report, Moody's referred that the combined net profits of the four largest banks in the UAE decreased by 35% to $6.7 billion in 2020, when compared to $10.2 billion in 2019.

First Abu Dhabi Bank (FAB), Emirates NBD, Abu Dhabi Commercial Bank (ADCB), and Dubai Islamic Bank (DIB) saw lower net profits due to higher loan loss provisions, lower rates, and the absence of a large one time gain at ENBD.

These banks represent three-quarters of the UAE's banking sector assets, forming the four largest banks in the country.

An Analyst at Moody's, Francesca Paolino, said: "The increase in loan loss charges, was related to the pandemic and to the weakening of some large corporate names in the domestic market beforehand."