The total capital and reserves of banks operating in the UAE reached AED495.2 billion at the close of June 2024, marking a year-on-year (YoY) growth of 10.6 percent from AED447.8 billion in June 2023, as per the latest data from the Central Bank of the UAE (CBUAE).
The figures released by the central bank indicate that capital and reserves for banks in the country rose by 1.5 percent month-on-month, and by 1.2 percent during the first half of this year, WAM reported.
The CBUAE clarified that the figures for capital and reserves do not account for subordinated borrowings and deposits, but do include profits earned in the current year.
National banks comprised 86.3 percent of the total capital and reserves, amounting to AED427.5 billion ($116.4 billion) by the end of June, reflecting a YoY rise of 10.6 percent from AED386.6 billion in June 2023.
Conversely, foreign banks accounted for 13.7 percent of the total capital and reserves, with a value of AED67.7 billion at the end of June, marking a YoY increase of 10.6 percent compared to AED61.2 billion in June 2023.
Read more: National banks in the UAE invest $1.19 billion in local stock markets in 12 months: CBUAE
Record high investments
In a related note, statistics from the Central Bank revealed that the investments of banks in the UAE surpassed AED680 billion at the end of June, reaching an all-time high.
The data indicated that bank investments grew YoY by 18.4 percent to AED680.2 billion at the end of June, up from approximately AED574.3 billion in June 2023, reflecting an increase of AED105.9 billion over the year.
On a monthly basis, bank investments rose by 1.07 percent from AED673 billion in May, while in the first half of this year, they increased by 7.1 percent from AED635.1 billion at the end of last year, a growth of AED45.1 billion.
Bonds held to maturity represented the largest portion of these investments, accounting for 48.8 percent with AED332.2 billion at the end of May, which is a month-on-month (MoM) increase of 0.1 percent and a YoY rise of 26.2 percent.
Investments in securities representing third-party debt (debt securities) constituted 41.1 percent of the total investments, amounting to AED279.6 billion at the end of June, rising MoM by 2 percent and YoY by 12.5 percent.
Banks’ investments in equities reached AED16.7 billion in June, reflecting a 38 percent increase YoY and a 1.8 percent rise MoM, while other investments by banks accounted for 51.7 percent, increasing by 2.2 percent MoM and 2.6 percent YoY.
Moreover, these investment figures do not include banks’ deposits with the Central Bank in the form of Certificates of Deposit and Monetary Bills.
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