Mashreq, the Dubai-based lender led by Abdul Aziz Al Ghurair, said its third-quarter profit fell 7.6 per cent as it earned less from fees and commissions.
The decline comes amid increasing signs that the bull run banks have enjoyed in recent years is starting to wane amid lower oil prices.
Sharjah-based United Arab Bank said last week that it had booked a loss after recording a rise in bad loans from some of its commercial customers.
Mashreq’s net income fell to Dh551.4 million to the three months ended September 30 from Dh596.8m a year earlier. Net fee and commission income dropped to Dh408.3m from Dh425.4m, the bank said. Meanwhile, net interest income rose to Dh825.9m during the quarter from Dh785.6m in the same period last year.
The UAE’s economy has begun to show signs of stress after the price of oil lost half of its value in the past year. Bank executives, however, remain optimistic about growth as the size of the non-oil economy continues to grow.
“Looking at the wider economy, the rest of 2015 looks stable for banking as the region’s non-oil sectors continue to grow and expand,” Mr Al Ghurair said. “The UAE remains a strong and stable economy.”
Elsewhere, National Bank of Fujairah said its third-quarter profit increased 15.8 per cent to Dh150m.
mkassem@thenational.ae
Follow The National's Business section on Twitter
