“Fitch” expects an increase in the profits of UAE banks, supported by the increase in interest rates

I expected Fitch AgencyIncreasing interest rates by 200 basis points would boost the operating profits of UAE banks by 11%.

The agency added that the liquidity conditions in the UAE are good, supported by a modest growth in loans, with the loan-to-deposit ratio standing at its lowest level in 10 years.

Fitch indicated that the largest percentage of mortgages in the UAE are with variable interest, which means that banks are able to re-price them in line with the interest rates.