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The total capital and reserves of banks operating in the country reached AED 495.2 billion at the end of June 2024, an annual increase of about 10.6% compared to AED 447.8 billion in June 2023, according to the latest statistics from the Central Bank of the UAE.
The Central Bank’s statistics, issued today, showed that the capital and reserves of banks operating in the country increased on a monthly basis by 1.5%, while it increased during the first half of this year by about 1.2%.
The Central Bank explained that the banks’ capital and reserves do not include loans/secondary deposits, but they do include the current year’s profits.
According to the Central Bank, national banks accounted for about 86.3% of the total capital and reserves of banks operating in the country, with their value reaching 427.5 billion dirhams at the end of last June, an annual increase of 10.6%, compared to about 386.6 billion dirhams in June 2023.
The share of foreign banks reached 13.7% of the total capital and reserves of banks operating in the country, with its value reaching 67.7 billion dirhams at the end of last June, an annual increase of about 10.6%, compared to about 61.2 billion dirhams in June 2023.
In a related context, Central Bank statistics showed that investments of banks operating in the country exceeded the 680 billion dirham barrier at the end of last June, achieving the highest level in its history.
Statistics showed that the investments of banks operating in the country increased by 18.4 percent on an annual basis to reach 680.2 billion dirhams at the end of last June, compared to about 574.3 billion dirhams in June 2023, an increase equivalent to 105.9 billion dirhams within 12 months.
Bank investments increased on a monthly basis by 1.07 percent compared to 673 billion dirhams last May, while they increased during the first half of this year by about 7.1 percent compared to about 635.1 billion dirhams at the end of last year, an increase equivalent to 45.1 billion dirhams.
Bonds held until maturity accounted for the largest share of banks’ investments, at around 48.8 percent, reaching AED 332.2 billion at the end of last May, an increase of 0.1 percent on a monthly basis, and an increase of around 26.2 percent on an annual basis.
The share of banks’ investments in securities representing debts to others (“debt bonds”) amounted to about 41.1 percent of total investments, reaching AED 279.6 billion at the end of last June, an increase on a monthly basis of about 2 percent and on an annual basis of 12.5 percent.
Bank investments in stocks reached AED 16.7 billion last June, an increase of about 38 percent on an annual basis, and 1.8 percent on a monthly basis, while other bank investments amounted to about 51.7 percent, an increase of about 2.2 percent on a monthly basis, and 2.6 percent on an annual basis.
It is noteworthy that bank investments do not include the bank’s deposits with the Central Bank in the form of certificates of deposit and cash bills.
