Evaluating the financial performance and financial stability of national commercial banks in the UAE

It is interesting to analyse the banking performance of the national commercial banks in UAE for a period of six years from 2008 to 2013 that includes crisis and post crisis period as the financial analysts are of the opinion that the crisis has not calmed down yet. This study is primarily based on the financial ratios such as return on assets (ROA) and return on equity (ROE) to assess the financial performance; and quantitative factors that comprise the CAMEL model consisting of five parameters, namely, capital adequacy, asset quality, management capability, earnings ability and liquidity ratio and Altman's Z-score to test the financial stability of ten national commercial banks in UAE. The findings suggest that financial performance declined from the year 2008 to 2010 but has improved there onwards from 2011 to 2013; and all the banks considered in the study are financially stable and have shown resilience to the global crisis.