The gross assets of UAE banks, including bankers’ acceptances, rose by 0.5%, from Dh4.28 trillion at the end of May 2024 to Dh4.31 billion at the end of June 2024, according to data released by the Central Bank of the UAE (CBUAE).
The CBUAE also noted that gross credit grew by 1.1%, from Dh2.07 trillion at the end of May to Dh2.10 trillion at the end of June. This increase was attributed to a 0.8% rise in domestic credit and a 2.9% boost in foreign credit.
Domestic credit expansion was driven by a 1.4% increase in credit to the public sector and a 1.0% rise in private sector credit, offsetting declines of 1.1% and 0.6% in credit to the government sector and non-banking financial institutions, respectively.
Bank deposits also saw a 0.5% increase, from Dh2.68 trillion at the end of May to Dh2.69 trillion at the end of June. This growth was fueled by an 8.4% rise in non-resident deposits, despite a slight 0.1% decline in resident deposits.
The reductions in government sector and government-related entity deposits by 3.0% nd 0.1% were balanced by a 0.4% increase in private sector deposits and a 6.6% rise in non-banking financial institutions deposits.
In terms of money supply, aggregate M1 increased by 0.6% to Dh884.1 billion, primarily due to a rise in monetary deposits. Aggregate M2 rose by 0.4% to Dh2.169 trillion, driven by increases in M1 and quasi-monetary deposits. Aggregate M3 saw a 0.% increase to Dh2.63 trillion, despite a reduction in government deposits.
The monetary base shrank by 0.3% to Dh725 billion, mainly due to reductions in currency issued, banks’ current accounts, and monetary bills. However, the reserve account saw a significant increase of 37.3%.
The CBUAE’s foreign assets hit a record high, exceeding Dh770 billion for the first time, with a 0.5% increase from Dh766.73 billion in May to Dh770.6 billion in June 2024. The year-on-year rise in foreign assets was 30%, reaching Dh592.11 billion in June 2023. This growth was driven by increases in bank balances, deposits abroad, foreign securities, and other foreign assets.
The Central Bank’s balance sheet reached Dh806.39 billion at the end of June, marking a 24.2% year-on-year increase. The balance sheet included Dh352.79 billion for cash and bank balances, Dh206.43 billion for investments, and Dh208.78 billion for deposits, among other allocations.
