Abu Dhabi: Commercial and Islamic Abu Dhabi-based banks saw a 6.4 per cent increase in net earnings to reach Dh7.8 billion during the fourth quarter of 2014 compared to the same time in 2013, with employee numbers increasing 13.9 per cent in the quarter.

A report released by the Statistics Centre Abu Dhabi (Scad) on Wednesday showed that the gross income of commercial banks represented 83.1 per cent of net earnings of all banks. Islamic banks’ gross income made up 16.9 per cent of the net earnings figure.

The interest received by commercial banks climbed 2.2 per cent in Q4 2014, while the interest paid dropped by 4.2 per cent, accounting for a growth of 5.1 per cent in the gross income of commercial banks over Q4 2013.

Saleem Khokhar, head of equities at the National Bank of Abu Dhabi’s asset management group, said the figures showed the resilience of the UAE’s banking sector, and though there is pressure in the net interest margins due to strong competition, banks registered positive performance.

“We’ll continue to see decent growth. I think oil prices will have an impact, and there’s no doubt about it, but it will take time for that to filter through. It’s an environment where we do expect some pressure but overall, I think we’ll see fair numbers in 2015,” he said.

As for employment in banks, Khokhar said that banks are now pushing harder to achieve lower cost-income ratios.

“I think interest rates will depend on the global rates environment and how that filters through. I’m not too concerned about that side of the equation overall,” he added.

About two thirds of the gross income of commercial banks in Abu Dhabi in the last quarter of 2014 was earned from net interest received, while 9.8 per cent was generated by investment.

By the end of Q4, the total number of bank employees had increased to 14,075, SCAD’s report showed. Average annual compensation per worker in the banks also increased by 14.8 per cent in the quarter compared to Q4 2013.

The interest rate on deposits advanced two from 0.53 per cent in the Q4 2013 to 0.55 per cent in Q4 2014. However, a breakdown of interest data shows a decrease in the interest rate on personal loans from 9.69 per cent to 9.67 per cent over the same period.

The interest rate on business loans also decreased from 8.49 per cent to 7.84 per cent in the last quarter of 2014, while the interest rate on overdrafts decreased from 9.52 per cent to 9.3 per cent.