The UAE’s banking sector recorded Dh801.52 billion in liquid assets at the end of Q2 2024, according to the latest data from the Central Bank of the UAE (CBUAE). This marks a year-on-year rise of 20.2%, or Dh135 billion, compared to Dh666.6 billion in Q2 2023.
The Central Bank’s Core Financial Soundness Indicators – Q2 2024 report also highlighted a quarter-on-quarter increase of 2%, equivalent to Dh14.9 billion, from Dh786.6 billion at the close of Q1 2024.
Liquid assets represented 18.9% of the sector’s total assets, valued at Dh4.244 billion at the end of Q2 2024, slightly up from 18.8% in the previous quarter.
The report further revealed that the UAE banking sector remains well-capitalised, with a capital adequacy ratio of 18.3% by the end of Q2 2024, up from 18% in Q1 2024, and 17.9% in Q4 2023. This is comfortably above the regulatory minimum capital adequacy ratio of 13%, which includes a 2.5% capital buffer and a minimum Tier 1 capital ratio of 8.5%, in line with Basel III Capital Guidelines.
The Tier 1 Capital Ratio rose to 17% at the end of Q2 2024, compared to 16.7% in Q1 2024, while the Common Equity Tier 1 Capital Ratio reached 15.3%, up from 15% in the previous quarter. These capital levels, according to the report, provide a robust buffer, ensuring the sector’s stability and resilience.
