The aggregate capital and reserves of banks operating in the UAE reached Dhs476.6 billion at the end of March 2024, according to the latest statistics from the Central Bank of the UAE (CBUAE).

The capital and reserves of banks operating in the country increased year-on-year (YoY) by about Dhs45.9 billion or 10.7 per cent compared to approximately Dhs430.7 billion in March 2023.

According to the Central Bank, national banks accounted for approximately 85.5 per cent of the total capital and reserves of UAE-based banks, logging a total of Dhs407.7 billion at the end of March 2024, a YoY increase of 10.2% compared to about Dhs370.1 billion in March 2023.

The share of foreign banks reached 14.5% of the total capital and reserves of banks operating in the country, with their value amounting to Dhs68.9 billion at the end of March 2024, a YoY increase of about 13.7% compared to about Dhs60.6 billion in March 2023.

At the end of March 2024, the aggregate capital and reserves of banks operating in the Emirate of Dubai reached Dhs235.2 billion, logging a YoY growth of 12.9 per cent, banks operating in Abu Dhabi recorded around Dhs204 billion, a YoY increase of 7.5 per cent. Meanwhile, the aggregate capital and reserves of banks operating in other emirates reached around Dhs37.4 billion, a YoY increase of 14.4 per cent.

As per a CBUAE report released on Wednesday, the balance sheet of the Central Bank of the UAE (CBUAE) hit a record Dhs771.23 billion by the end of March 2024, a YoY growth of 30% from approximately Dhs594.12 billion in March 2023.

On a monthly basis, the apex bank’s balance sheet increased by 3.2 percent, or Dhs23.6 billion, from Dhs747.62 billion in February 2024.

According to the statistics, allocations of the Central Bank’s balance sheet assets included Dhs359.04 billion for cash and bank balances in February, approximately Dhs216.21 billion in investments, Dhs158.46 billion in deposits, Dhs1.73 billion in loans and advances, and Dhs35.79 billion in other assets.

On the liabilities and capital side, the balance sheet comprised Dhs322.9 billion for current and deposit accounts, around Dhs264.12 billion for treasury bills and Islamic certificates of deposit, Dhs146.85 billion for issued banknotes and coins, Dhs26.2 billion for capital and reserves, and Dhs11.12 billion for other liabilities.

The Central Bank of the UAE announced that the money supply aggregate M1 increased by 3.7%, from Dhs847.0 billion at the end of February 2024 to AED878.1 billion at the end of March 2024. This was due to Dhs6.0 billion rise in currency in circulation outside banks, combined with Dhs25.1 billion increase in monetary deposits.

In a statement today, the CBUAE said that the money supply aggregate M2 increased by 1.4%, from Dhs2,104.7 billion at the end of February 2024 to Dhs2,134.8 billion at the end of March 2024.

The money supply aggregate M3 increased by 1.9%, from Dhs2,535.0 billion at the end of February 2024 to Dhs2,583.7 billion at the end of March 2024. M3 increased mainly because of an amplified M2, combined with an increase of Dhs18.6 billion in government deposits.

The monetary base expanded by 2.1%, from AED689.5 billion at the end of February 2024 to Dhs703.7 billion at the end of March 2024. The rise in the monetary base was driven by the growth in key sub-categories: currency issued increased by 5.4%, reserve account by 21.0%, and monetary bills and Islamic certificates of deposit by 2.8%, overshadowing the decline recorded in banks and OFCs’ current accounts and overnight deposits of banks at CBUAE by 34.8%.

Gross banks’ assets, including bankers’ acceptances, increased by 1.3%, from Dhs4,198.0 billion at the end of February 2024 to Dhs4,254.5 billion at the end of March 2024.

Gross credit grew by 1.7% from Dhs2,013.5 billion at the end of February 2024 to Dhs2,047.0 billion at the end of March 2024. Gross credit growth was driven by the increase in domestic credit by 1.1% and in foreign credit by 5.3%.

Domestic credit expansion was due to an increase in credit to the public sector (government-related entities), the non-banking financial institutions, and the private sector by 2.8%, 1.7%, and 1.4%, respectively.

Total bank deposits climbed by 1.9%, increasing from Dhs2,608.0 billion at the end of February 2024 to Dhs2,657.1 billion at the end of March 2024. The increase in total bank deposits was due to the growth in resident deposits by 1.5% and in non-resident deposits by 6.4%.

Resident deposits expanded as a result of the growth in non-banking financial institutions deposits by 17.8%, government sector deposits by 3.3%, and private sector deposits by 2.0%.

WAM