UAE banks record higher profits in Q1 2024 than last year, says Al Ghurair

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The UAE's banks’ profits in the first quarter of 2024 have grown better than last year as well as quarter-on-quarter, a senior official said on Tuesday.

“First-quarter banks’ profit after-tax have done better than last year. They have grown 23 per cent quarter on quarter. They have grown because there is a good opportunity in the economy to make money,” said Abdulaziz Al Ghurair, chairman of the UAE Banks Federation in a media briefing on Tuesday.

In a reply to a question about corporate tax, he said businesses make money because the government provides the right environment for them. “Time has come that we pay back. I don’t mind paying taxes if I can make money. Paying 9 per cent and 15 per cent next year is not an issue. Our customers and investors also look at our before-tax profits and after-tax profits."

"It is our obligation to pay taxes, which are used for government funds for roads, infrastructure such as electricity, water, education, health and environment. These help in making the UAE a pleasant place to live and work in. This also helps in attracting more businesses,” he said during a media brief on Tuesday.

He added that the corporate tax in the UAE is quite low compared to other countries.

Among the local banks, Mashreq, which is owned by Al Ghurair, announced a 25 per cent jump in the first quarter profit, while First Abu Dhabi reported a 5.6 per cent increase and Commercial Bank International announced a 19 per cent gain in profits. Similarly, other local banks also reported strong profits in the first quarter.

Al Ghurair added that the future of banking in the UAE is poised for significant transformation driven by technology and evolving consumer preferences. “We anticipate a shift towards more digital-centric banking experiences, with increased adoption of mobile banking platforms."

"Additionally, personalised and tailored financial services will become the norm as banks leverage data analytics and artificial intelligence to better understand and meet customer needs. Embracing innovation while maintaining a focus on customer-centricity will be key for banks to stay competitive and relevant in the evolving landscape of banking in the UAE,” he added.