Aggregate capital and reserves of UAE-based banks increased by around Dh63 billion year on year
The combined capital and reserves of banks operating in the UAE surpassed the Dh500 billion mark at the end of February 2024, according to the latest statistics from the Central Bank of the UAE (CBUAE).
The aggregate capital and reserves of UAE-based banks increased by around Dh63 billion or 14.4 per cent year on year (YoY), reaching Dh501.5 billion at the end of February 2024, compared to around Dh438.5 billion in February 2023. Monthly, it grew 0.95 per cent compared to Dh496.8 billion in January 2024, an increase of approximately Dh4.7 billion.
National banks accounted for around 86.5 per cent of the aggregate capital and reserves of UAE-based banks, logging a total of Dh433.7 billion at the end of February 2024,a YoY increase of 14.6 per cent, compared to around Dh378.6 billion in February 2023, the data shows.
The share of foreign banks at 13.5 per cent, reached Dh67.8 billion at the end of February 2024, a YoY increase of around 13.2 per cent, compared to around Dh59.9 billion in February 2023.
At the end of February 2024, the combined capital and reserves of banks operating in Dubai reached Dh246.4 billion, logging a YoY growth of 15.1 per cent, while banks operating in Abu Dhabi recorded around Dh217 billion, a YoY increase of 13.3 per cent. The aggregate capital and reserves of banks operating in other emirates reached around Dh38.1 billion, a YoY increase of 15.5 per cent, CBUAE report said.
Savings deposits in the UAE’s banking sector, excluding interbank deposits, attracted around Dh33.3 billion to reach Dh278.37 billion at the end of February 2024, compared to about Dh245.01 billion in February 2023, with a YoY) growth of 13.6 per cent.
The apex bank’s statistics showed that the dirham accounted for the largest share of savings deposits, about 83 per cent or Dh230.18 billion, while the share of foreign currencies amounted to 17 per cent or Dh48.18 billion.
Savings Deposits in banks have been on a consistently upward trajectory in recent years, rising from Dh152 billion at the end of 2018 to Dh172.2 billion in 2019, and reaching Dh215.2 billion in 2020, Dh241.8 billion in 2021, and Dh245.8 billion in 2022.
Demand deposits increased to Dh1.05 trillion at the end of February 2024, with a YoY growth rate of 14.8 per cent compared to Dh919.74 billion in February 2023, an increase equivalent to Dh136.25 billion.
The demand deposits total comprised Dh737 billion in the local currency, the dirham, accounting for 70 per cent, and around Dh318.9 billion in foreign currencies, accounting for 30 per cent.
Demand deposits have also seen steady growth in recent years, rising from Dh577.6 billion at the end of 2018 to Dh599.6 billion at the end of 2019, Dh696.8 billion at the end of 2020, Dh848 billion in 2021, and Dh 907.3 billion in 2022.
According to the Central Bank’s bulletin, time deposits reached Dh 817.1 billion at the end of February 2024, with a 28.2 per cent increase YoY compared to about Dh 637.6 billion in February 2023, an increase of Dh 179.5 billion.
The dirham accounted for the largest share of time deposits, about 59 per cent or Dh480.4 billion, while the share of foreign currencies amounted to about 41 percent or Dh 336.7 billion.
The CBUAE also reported an increase in cash deposits to Dh725.8 billion in February 2024, with an annual increase of 11 per cent or the equivalent of Dh 71.2 billion, compared to Dh 654.6 billion in February 2023.
The apex bank’s cash aggregates statistics explained that cash deposits increased on a monthly basis by 1.92 per cent or the equivalent of Dh 13.7 billion, compared to about Dh 712.1 billion in January 2024.
Source: khaleejtimes