UAE Banks Achieve Record High Investments in History

Investments by banks operating in the UAE exceeded AED548 billion (about $149.32 billion) at the end of March last year, reaching the highest level in its history, according to the latest statistics from the UAE Central Bank.

Statistics from the Central Bank of the UAE, published in the Banking Performance Report, showed a 16% year-on-year increase in investment by banks operating in the country, reaching AED 548.5 billion at the end of March last year, equivalent to an increase of AED 75.8 billion from from approximately AED 472.7 billion in March 2022.

According to the Central Bank, bank investment increased on a monthly basis by 1.3% compared to 541.4 billion dirhams in February last year, equivalent to an increase of 7.1 billion dirhams in one month.

According to UAE Central, securities representing debts to others, “debt bonds”, accounted for the largest share of bank investment at around 45.6%, reaching AED250.1 billion at the end of March last year, up 0.5% in monthly calculation. , compared with 248.9 billion dirhams in February last year.

The share of banks’ investments in securities held to maturity amounted to about 43% of total investment, reaching AED 236.3 billion at the end of March last year, an annual increase of 74.1% compared to AED 135.7 billion in March 2022 year, and a monthly increase of 2.6% compared to 230.3 billion dirhams in February 2023.

Bank equity investments reached AED11.9 billion at the end of March last year, up 0.8% year-to-date from AED11.8 billion in December 2022, down 0.8% m/m. and on an annual basis about 29.6%.

According to the statistics of the Central Bank, other investments of banks at the end of March last year amounted to about 50.2 billion dirhams, which is in line with the level recorded in February and January, while on an annualized basis they increased by 11.8% compared to 44.9 billion dirhams. . dirhams in March 2022.

It is noteworthy that the bank’s investments do not include the bank’s deposit with the Central Bank in the form of certificates of deposit and money transfer bills.

(US$1 = AED 3.67)

Source: VAM