Banks operating in the UAE posted profits of Dh28.8 billion ($7.8 billion) during the first nine months of 2017, a growth of 8 per cent over the corresponding period last year, said the Governor of the UAE Central Bank.

Mubarak Rashed Al Mansouri was speaking on the sidelines of the Middle East Banking Forum which was organised in Abu Dhabi, reported Wam, the Emirates official news agency.

The governor affirmed that the UAE solvency has secured "very good levels in light of sufficient capital buffers, with non-residents' deposits surging to Dh188 billion, making up to 12 per cent of assets at local banks."

The rebound secured by global oil prices is a powerful enabler for economic recovery, he said, adding that government deposits have grown by an annual 39 per cent, rising 19 per cent to Dh223.6 billion during 2017.

UAE banks’ exposure to SMEs remains very limited as small-scale enterprises interest rates continue to be as low as 7-20 per cent without collaterals, he added.

"The Central Bank is not considering any further mergers involving Emirati banks for the time being," he noted, affirming that the UAE banking system is among the most diversified and competitive across the region.