The banking sector in Abu Dhabi showed consistent increases in liquidity and net profits throughout 2012, largely aided by net-interest earnings and bigger profits from Islamic finance. Fourth-quarter results and a strong performance by many banks’ shares - the strongest in five years - have led many analysts to conclude that the sector is firmly on the path to recovery.
Indeed, Reuters reported on February 6 that the Abu Dhabi bank index was up by 11.4%, outperforming a 10.1% increase in the overall market, though from an admittedly low base. October 2012 was as a major turning point for the UAE’s banks, when outstanding provisions - which banks set aside for bad loans - decreased for the first time since 2008………………………………………..Full Article: Source