Dubai: UAE banks, whose second-quarter profits were hit by credit provisions, may see growth curbed by difficult funding conditions but their overall profitability is attractive, Goldman Sachs said Monday.

The bank earlier revised its ratings and stock price targets on five UAE banks.

Goldman Sachs cut First Gulf Bank to neutral, while raising Dubai Islamic Bank and Abu Dhabi Commercial Bank to neutral. It also downgraded National Bank of Abu Dhabi to sell from neutral.

"While we expect the cost of risk to remain high and top line pressure to emerge due to narrowing margins and lower volumes, we estimate that profitability levels in general will remain attractive," Goldman Sachs said in a research note.