UAE-based banks have managed to attract substantial new “3-month” deposits, amounting to more than AED54 billion ($14.7 billion), during the initial five months of the current year, as per the latest statistics released by the CBUAE.
The data from the Central Bank of the UAE showcases that deposits in banks for a three-month tenure reached approximately AED659.01 billion at the end of May 2024, compared to AED604.99 billion in December 2023, marking a growth of 8.9 percent.
National banks accounted for a dominant share of 90.9 percent of these three-month deposits, equivalent to AED 598.9 billion, while foreign banks held a 9.1 percent share, or AED 60.02 billion.
Additionally, UAE-based financial institutions successfully garnered AED18.1 billion in term deposits during the initial five-month timeframe, propelling the overall total to AED227.71 billion by the end of May. This reflects a notable increase from the AED205.4 billion recorded at the close of 2023, representing a robust growth of 8.6 percent.
National banks accounted for 89.9 percent of these term deposits, valued at AED204.8 billion, while foreign banks held a 10.1 percent share, amounting to AED22.8 billion, WAM reported.
Term deposits
Term deposits with a maturity of more than six months to 12 months witnessed an influx of approximately AED15.2 billion during the first five months, reaching around AED275.89 billion at the end of May, compared to about AED260.6 billion in December 2023, an increase of roughly 6 percent.
National banks dominated this segment, accounting for 92.2 percent of term deposits, equivalent to more than AED254.4 billion, while foreign banks held a 7.8 percent share, equivalent to AED21.42 billion.
Moreover, term deposits exceeding 12 months recorded AED44.48 billion at the end of May, up by 0.52 percent or AED230 million compared to AED44.25 billion in December 2023. National banks accounted for 94.1 percent, or AED 41.8 billion, of this deposit category, while foreign banks held a 5.9 percent share, or AED2.63 billion.
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