UAE banks’ capital, reserves hit AED495.2 billion by June 2024

ABU DHABI/WAM

The total capital and reserves of banks operating in the UAE reached AED 495.2 billion at the end of June 2024, a year-on-year (YoY) increase of 10.6 percent compared to AED 447.8 billion in June 2023, according to the latest statistics of the Central Bank of the UAE (CBUAE).
The apex bank’s figures released on Thursday showed that the capital and reserves of banks operating in the country increased on a monthly basis by 1.5 percent, while during the first half of this year, it increased by 1.2 percent.
The CBUAE explained that banks’ capital and reserves do not include subordinated borrowings/deposits, but do include the current year’s profits.
National banks accounted for 86.3 percent of the total capital and reserves of banks operating in the country, with their value reaching AED427.5 billion at the end of June, a YoY increase of 10.6 percent, compared to AED386.6 billion in June 2023.
The share of foreign banks reached 13.7 percent of the total capital and reserves of banks operating in the UAE, with a value of AED67.7 billion at the end of June, up 10.6 percent YoY, compared to AED61.2 billion in June 2023.
In a related context, Central Bank statistics showed that the investments of banks operating in the UAE exceeded AED680 billion at the end of June, achieving the highest level in its history.
The statistics showed that the investments of banks operating in the UAE increased YoY by 18.4 percent to AED680.2 billion at the end of June, compared to about AED574.3 billion in June 2023, an increase of AED 105.9 billion in 12 months.
On a monthly basis, banks’ investments increased by 1.07 percent compared to AED673 billion in May, while during the first half of this year, they increased by 7.1 percent compared to AED635.1 billion at the end of last year, an increase equivalent to AED45.1 billion.
Bonds held to maturity accounted for the largest share of banks’ investments at 48.8 percent with AED332.2 billion at the end of May, a month-on-month (MoM) increase of 0.1 percent and a YoY increase of 26.2 percent.
The share of banks’ investments in securities representing third-party debt (debt securities) reached 41.1 percent of total investments with AED 279.6 billion at the end of June, up MoM by 2 percent and YoY by 12.5 percent.
Banks’ investments in equities reached AED16.7 billion in June, up 38 percent YoY and 1.8 percent MoM, while banks’ other investments reached 51.7 percent, up 2.2 percent MoM and 2.6 percent YoY.
Banks’ investments do not include the banks’ deposits with the Central Bank in the form of Certificates of Deposit and Monetary Bills.