Interest Margin (NIM) as proxies for cost efficiency, while
Earning Assets to Total Assets (EARTA) ratio and Earning
Assets to Gross Loans (EARGL) ratio are used to measure
bank profitability (Bahrini 2017). The independent variables
used in our analysis are (1) specific bank-level characteristics
such as Deposits/Assets, Loans/Assets, ROA, Other Earning
Assets, Income Diversity, Non-Interest Income and Log
(Size); (2) capital adequacy ratios: Tier 1 ratio, Tangible
Equity, Liquid Assets, and Funding Fragility; (3) risk measures: Equity Volatility and Log(Z); and (4) ownership
structure measures: Ownership concentration, Government
ownership, and Foreign ownership (Noor and Ahmad 2012).
A description of the variables used in the analysis is available in Table 3.
Table 2 Composition of the UAE banks (2005–2015)
Banks
Listing
Bank ownership
Bank type
Average number of
observations
Listed
Unlisted
National
Foreign
CB
IB
Abu Dhabi Commercial Bank
1
0
1
0
1
0
10.8
Abu Dhabi Islamic Bank
1
0
1
0
0
1
5.7
Abu Dhabi Islamic Bank—Public
0
1
1
0
0
1
10.75
Ajman Bank
1
0
1
0
0
1
4.35
Al Hilal Bank PJSC
1
0
1
0
0
1
7.1
Al Khaliji France SA
1
0
0
1
1
0
3.1
Amlak Finance PJSC
1
0
1
0
0
1
8.55
Arab Bank for Investment and Foreign Trade
(Al Masraf)
1
0
1
0
1
0
9.9
Bank of China Middle East (Dubai)
0
1
0
1
1
0
1.55
Bank of Sharjah
1
0
1
0
1
0
9.55
Banque Nationale de Paris International
0
1
0
1
1
0
0.3
Citibank NA
1
0
0
1
1
0
1.55
Commercial Bank International
1
0
1
0
1
0
10.55
Commercial Bank of Dubai PSC
1
0
1
0
1
0
10
Dubai Islamic Bank PJSC
1
0
1
0
0
1
10.55
Emirates Islamic Bank PJSC
1
0
1
0
0
1
9.7
Emirates NBD PJSC
1
0
1
0
1
0
9.35
First Gulf Bank
1
0
1
0
1
0
10.2
HSBC Bank Middle East
0
1
0
1
1
0
2.35
HSBC Bank Middle East Limited
1
0
0
1
1
0
2.3
International Banking Corporation
0
1
0
1
1
0
3.3
Invest Bank PSC
1
0
1
0
1
0
8.9
Mashreq Bank PSC
1
0
1
0
1
0
9.85
National Bank of Abu Dhabi
1
0
1
0
1
0
8.8
National Bank of Fujairah PJSC
1
0
1
0
1
0
10.5
National Bank of Ras-Al Khaimah
1
0
1
0
1
0
7.45
National Bank of Um-Al Qaiwain
1
0
1
0
1
0
10.6
Noor Bank
1
0
1
0
0
1
6.6
Sharjah Islamic Bank
1
0
1
0
0
1
10.9
Tamweel PJSC
1
0
1
0
0
1
9.9
Union National Bank
1
0
1
0
1
0
10.85
United Arab Bank PJSC
1
0
1
0
1
0
5.85
Total
27
5
25
7
22
10
241.7
Percentage (%)
84.38
15.63
78.13
21.88
68.75
31.25
68.66
Sources Orbis Bank Focus (Bankscope), the banks’ official websites, and the Central Bank of UAE
66
F. Mrad and M. Mateev