Moody's has put HSBC Middle East under review for a possible downgrade, based on a weakening UAE economy and worries over the bank's parent company. "The parent company's negative outlook... in tandem with increasing concerns about the UAE and the fact that 70 per cent of their activities are in the UAE was enough to put them under review," said John Tofarides, an analyst at Moody's. He also said the "potential of rising delinquencies in the next 12 to 18 months was significantly enhanced". On March 9, Moody's changed the outlook for HSBC Holdings, the global parent company, to negative from stable, and downgraded HSBC Bank, the group's European operations. In a similar decision on Tuesday, Standard & Poors put the long-term counterparty rating of four UAE banks on "credit watch" with negative implications. The banks are Mashreqbank, Emirates Bank International, National Bank of Dubai and Dubai Islamic Bank. Regional banks have suffered from a shortage of liquidity following the outflow of money last autumn. This has left many banks hesitant to lend as their loan-to-credit ratios far exceed the required rate of 100. In addition, there are growing worries that customers may default on loans and mortgages. The fall of property prices and widespread job losses have made matters worse. Funds are still hard to find, which further aggravates an already slowing economy, the latest Central Bank data show. The assets of 24 national banks and 28 foreign units fell 1 per cent to Dh1.48 trillion (US$402.94 billion) at the end of January from December. Until then, they had increased monthly. Two weeks ago, Youssef Nasr, the chief executive of HSBC's regional operations, said he expected bad loans "to continue to go up". At the time, HSBC Middle East also said it had seen a "notable deterioration of credit quality" last year paired with a "material increase in loan impairment charges". Total non-performing loans in the region rose to $321 million from $274m a year earlier, as the bank raised its impairment charges to $378m. email@example.com
- NBAD targets lending growth
- UAE and Qatar banks warned on Expo 2020 and 2022 Fifa World Cup lending
- NBAD plans second sale of Kangaroo bonds
- NBAD aims to increase Latin America lending by 20 per cent
- Kuwaiti investment firm A’ayan and its counterparts go back to basics
- Three of the best no-hassle UAE salary transfer bank accounts
- Most Viewed
- Most Commented
- Most Viewed
- Most Commented
- Federal Traffic Council approves proposal to lower UAE driving age
- Men ripped off woman’s clothes in bathroom, Abu Dhabi court hears
- Ties no longer mandatory for Dubai cabbies amid safety concerns
- OSN blames rival for TV sport blackout in the UAE as fans will have to buy new set-top boxes
- Live blog: With the emergency workers at Rashid Hospital Trauma Centre
In pictures: India’s health and fitness guru Mickey Mehta
Mickey Mehta, whose client list reads like a who’s who of India’s elite, describes himself as a “holistic health guru” and “a life coach and philosopher”.
In pictures: Top 10 most popular mobile handsets in the UAE
Here are the top 10 mobile handets in the UAE by specific model for the fourth quarter of 2013, according to the Telecommunications Regulation Authority.
Emirates Airline and Qatar Airways defend cabin crew rules
Carriers defend their policies on pregnancy and marriage. Emirates has a policy whereby female cabin crew who become pregnant in the first three years have to leave.
In pictures: Japan three years after the disaster
As Japan marks the third anniversary of the devastating earthquake, the country struggles to rebuild tsunami-hit communities and to clean up radiation from the Fukushima nuclear plant.
In pictures: CeBIT 2014 opens in Germany
CeBIT 2014 got underway in Hannover, Germany with mobile security and encrypted communications some of the topics expected to feature in the spotlight in Europe's largest technology trade show.
Rates report: Latest on UAE loans, accounts and credit cards
Souqamal.com brings you the latest interest rates on banking products in the UAE.