The UAE Central Bank approves dividends of 15 billion dirhams to banks for the year 2020

Abdul Hamid Muhammad Saeed Al-Ahmadi, Governor of the UAE Central Bank, said on Tuesday that the bank had agreed to banks by the end of 2020 to distribute dividends worth more than 15 billion dirhams (4.1). Billion dollars).

Al-Ahmadi added, according to (WAM), that this will provide cash liquidity in the market for shareholders, whether they are governmental and private bodies and institutions or individuals, thus stimulating more investments and increasing The spending cycle in the country.

He affirmed that the financial statements of banks and other financial institutions in the UAE for the year 2020 are very encouraging, and the flexibility that the banking system has built shows over time, as the total assets, deposits and lending of the banking system increased , Albeit slightly.

The capital adequacy ratios are higher than the required levels (18.2% and the first tier of capital adequacy rate 17.1%), while the liquidity is 18.4%, with Appropriate and adequate levels of provisions mean that banks and financial institutions in the UAE have shown resilience and steadfastness in facing the crisis.

and continued: Some banks have witnessed a decline in profits, but this is a natural result for an exceptional year, and the decline in profits is better than the desire to do ill-considered work that mainly affects the solvency For banks.

and added: At the end of 2020, the Central Bank received requests from banks to approve dividends of more than 15 billion dirhams, after making sure that those banks adhered to the requirements. In supervision, dividends have been approved directly, which will provide cash liquidity in the market to shareholders, whether they are governmental and private bodies and institutions or individuals, thus stimulating more investments and increasing the spending cycle in the country.

The Governor of the Central Bank of the Emirates expected a strong return to growth in the UAE's GDP in 2021, calling on the business community and banks to participate in a new era to start the investment and work cycle To increase credit capacity, support affected customers, and formulate a different roadmap from the above.

Al-Ahmadi pointed to a number of very encouraging positive indicators, revealing that at the end of 2020, the Central Bank had received requests from banks to approve dividends of more than 15 billion dirhams, He approved it directly.