The Central Bank of the UAE's Financial Stability Report 2025 confirms the banking sector expanded total assets by 17.1% to AED 5.3 trillion by end-2025, with the loan portfolio growing 17.8% on the back of increased domestic lending to retail customers and private-sector businesses.
Asset quality improved markedly, with the non-performing loan ratio falling to 3.3% from 4.7% in 2024 and 8.2% in 2020, while the Capital Adequacy Ratio held at 17%, comfortably above regulatory minimums. Net profits rose 11.7% to AED 90.8 billion, supported by growth in total operating income and healthy deposit levels.
The CBUAE's 2025 supervisory stress tests validated sector resilience, with the average Common Equity Tier 1 ratio declining to a low of 11.1% under adverse scenarios while remaining above regulatory thresholds. The report also flagged continued progress under the Financial Infrastructure Transformation Programme, including advances in the Aani instant payments platform and the Jaywan national card scheme, alongside cross-border payment enhancements.
Gulf Economist Staff Writer