Boosting UAE Banks' Profits: Key Factors Revealed in New Study
The study looked at what factors affect the profitability of commercial banks in the United Arab Emirates. They analyzed data from 2013 to 2019 from sixteen banks. The results showed that factors like bank size, liquidity, diversification, and efficiency have a big impact on bank profitability. Also, managing non-performing loans and operating expenses well can improve profitability. However, factors like capital adequacy and macroeconomic conditions don't have a significant effect on bank profitability in the UAE. The study suggests that banks can make more money by focusing on their main activities, managing expenses efficiently, and using economic growth and interest rate changes to their advantage.