Commercial Bank of Dubai said its second quarter profit fell 22 per cent, weighed down by rising levels of bad debt amid a weakening of the economy.
Net income fell to Dh245 million in the second quarter versus Dh314m in the same period last year. Impairment allowances on loans and advances and Islamic finance more than doubled to Dh181.6m compared to Dh77.9m in same period last year.
Bad debt has been plaguing UAE banks since the slide in oil prices that began two years ago.
Most of those loans that have soured have come from small and medium size enterprises, which because of their small size are usually the first to go under when economic growth begins to slow.
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