UAE Banking Sector Sees Robust April Growth with Assets Reaching AED 4.3 Trillion

The Central Bank of the UAE (CBUAE) has reported a steady increase in the country's banking sector assets and deposits for April 2024.

Gross banks’ assets, including bankers’ acceptances, rose by 1.0% from AED 4,254.5 billion at the end of March to AED 4,296.5 billion at the end of April.

Gross credit saw a growth of 0.8%, reaching AED 2,063.1 billion, driven by a 0.7% rise in domestic credit and a 1.4% increase in foreign credit. The domestic credit expansion was primarily due to a 4.7% increase in credit to the government sector and a 0.4% increase in the private sector, offsetting declines in the public sector and non-banking financial institutions.

Aggregate bank deposits increased by 2.3%, reaching AED 2,717.5 billion. This was due to a 2.7% growth in resident deposits, despite a 2.9% decline in non-resident deposits. Government and private sector deposits grew by 13.0% and 1.4% respectively.

The money supply aggregates also reflected positive trends. M1 increased by 1.6% to AED 892.4 billion, M2 rose by 0.6% to AED 2,148.5 billion, and M3 expanded by 2.8% to AED 2,657.3 billion. The monetary base grew by 1.5%, driven by a significant increase in banks' current accounts and overnight deposits at the CBUAE.

Overall, the CBUAE's report highlights the UAE's banking sector's resilience and growth, showcasing a positive economic outlook for the region.

News Source: Emirates News Agency