The Banking Executive Magazine - September Issue 2022

UAE Banks UAB BANKS ON POSITIVE ECONOMIC SENTIMENTS IN UAE United Arab Bank (UAB) sees a bright outlook for the UAE banking industry and is confident of sustain- ing strong profit growth this year due to its prudent approach to risk man- agement and disciplined cost con- trol, its top official says. Shirish Bhide, chief executive officer of UAB, attributed strong growth in first-half profits to the UAE govern- ment’s policies to contain the Covid- 19 pandemic, Central Bank's targeted economic support scheme (TESS) to boost liquidity in banking sector and UAB's customer-centric approach after key changes in the bank's management. “The UAE is the best country in the world in terms of managing the pan- demic as they’ve taken all the proac- tive steps to stabilise the economy. The central bank's TESS program that ended in June this year also ensured macroeconomic stability in the bank- ing sector and it supported the clients and their businesses,” Shirish said in an interview. The UAE introduced an economic stimulus package worth Dh388 bil- lion as the Covid19 pandemic tipped the world economy into its worst re- cession since 1930. These stimulus plans include Dh50 billion under the TESS programme to boost liquidity in the financial and banking sector. “Most banks in the UAE were able to take advantage of the government's supportive measures as there was a lot of pent-up demand that has been bottled up for at least two years that started surfacing. It benefitted the tourism sector, the airline industry, entertainment and hospitality sec- tors,” Shirish said. “So, UAB was also able to take ad- vantage of that gradual opening up of the economy and start supporting its clients wherever possible. Obvi- ously, the demand for loans picked up since early this year we were able to deploy some loans that were in the pipeline and so forth and see some early successes on that front, which is continue to fuel the growth in the second quarter. We expect that trend will continue and benefit the bank and further strengthen its finan- cial position,” he said. To a question about loan growth, the UAB chief executive said the govern- ment spending will drive demand for loans in private sector. “Demand for loans in the UAE is driven by the government spending. We're expecting that on the back of higher oil prices the government will the BANKING EXECUTIVE 20 ISSUE 165 SEPTEMBER 2022