Central Bank statistics, issued on Tuesday, showed that the capital and reserves of banks operating in the country rose to 502.6 billion dirhams ($136.84 billion) at the end of last July, an increase on an annual basis of about 10.5 percent, compared to 454.9 billion dirhams in July 2023, while they rose during the first seven months. From the current year, by about 2.7 percent, or the equivalent of 13.3 billion dirhams, compared to about 489.3 billion dirhams at the end of last year.
The Central Bank explained that banks’ capital and reserves do not include loans and “secondary deposits,” but they include profits for the current year.
And according to Central Bank of the EmiratesNational banks acquired about 86.3 percent of the total capital and reserves of banks operating in The UAEWith its value reaching 433.7 billion dirhams at the end of last July, an increase on an annual basis of 10.4 percent, compared to about 392.9 billion dirhams in July 2023.
The share of foreign banks reached 13.7 percent of the total capital and reserves of banks operating in the country, with their value reaching 68.9 billion dirhams at the end of last July, an increase on an annual basis of about 11.1 percent, compared to about 62 billion dirhams in July 2023.
In a related context, Central Bank statistics showed that the investments of banks operating in the country exceeded the barrier of 690 billion dirhams at the end of last July, achieving the highest level in its history.
The statistics showed that the investments of banks operating in the country recorded about 691.2 billion dirhams at the end of last July, an increase on an annual basis of 19.3 percent, compared to about 579.5 billion dirhams in July 2023, an increase equivalent to 111.7 billion dirhams in 12 months.
Bank investments increased on a monthly basis by 1.6 percent compared to 680.2 billion dirhams last June, while they increased during the first seven months of this year by about 8.8 percent compared to about 635.1 billion dirhams at the end of last year, an increase equivalent to 56.1 billion dirhams.
Bonds held until maturity accounted for the largest share of bank investments, at about 48.3 percent, reaching 333.9 billion dirhams at the end of last July, an increase on a monthly basis of 0.5 percent, and an increase on an annual basis of about 25.1 percent.
The share of banks’ investments in securities that represent debts owed to others (debt securities) amounted to about 41.9 percent of the total investments, reaching 289.5 billion dirhams at the end of last July, an increase on a monthly basis by about 3.5 percent and on an annual basis by 15.8 percent.
Bank investments in stocks reached 17 billion dirhams last July, an increase on an annual basis by about 36 percent, and on a monthly basis by 1.8 percent, while other bank investments amounted to about 50.8 billion dirhams, a decrease on a monthly basis by about 1.7 percent and an increase on an annual basis by 1. percent.
It is noteworthy that bank investments do not include the bank’s deposit with the Central Bank in the form of certificates of deposit and cash bills.
