Banking Profitability in United Arab Emirates from 2008 to 2012
40 Pages Posted: 29 Jan 2014
Date Written: November 25, 2013
This research investigates Banks’ profitability in the United Arab Emirates from 2008 to 2012 using Bankscope Data Base, Financial Statement, and quantitative methodology techniques. This study focuses on 4 banks, 2 Islamic banks (Dubai Islamic Bank PJSC, Abu Dhabi Islamic Bank - Public Joint Stock Co.), and 2 conventional banks (Union National Bank, Mashreqbank PSC). Each one hasassets of about 20 billion USD in 2012.
The Literature review summarized important related studies in different duration. They studied 27 criteria effects on profitability in GCC, Asia, Tunis, and Greek.
This research study on the Amount of Assets Change, Equity Change, Return on assets Average (ROAA) & Return on equity (ROEA), Profit before Tax, Operational profit, operational profit/average Equity, Interest income.
This study found different results from other studies such as inflation and GDP do not have an effect on change of assets, ROAA, and ROEA. Islamic banks faced many problems in 2009, and 2010, but they had a good correcting after one year, and their ratio’s different from others, they have less ROA, ROE, but their interest, after 2010 become the highest.
Keywords: Banks’ profitability, ROA, ROE, Total Assets, Total Equity, Interest, income, population, Inflation, real GDP, Statement Analysis Techniques, United Arab Emirates
JEL Classification: G2, E4, E6, E00, C1, C4, C8, A1, A3, A2, F3, M4, O5
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