UAE Bank Capital Soars to AED 495.2 Billion, Investments Hit AED 680 Billion

As of June 2024, the total capital and reserves of banks operating in the UAE have surged to AED 495.2 billion, marking a notable 10.6% increase from AED 447.8 billion in June 2023, according to the Central Bank of the UAE (CBUAE).

This growth reflects a monthly rise of 1.5% and a 1.2% increase for the first half of the year.

The CBUAE’s latest figures reveal that national banks hold the majority of this capital, accounting for 86.3% of the total, equivalent to AED 427.5 billion—an increase of 10.6% year-on-year. Foreign banks contribute 13.7% to the total, with capital reaching AED 67.7 billion, also up by 10.6% from the previous year.

In addition to the capital growth, banks' investments have hit a historic high, surpassing AED 680 billion by the end of June 2024. This represents an 18.4% increase from AED 574.3 billion in June 2023. The investments rose by 1.07% from AED 673 billion in May and by 7.1% in the first half of the year from AED 635.1 billion at the end of 2023.

Bonds held to maturity dominate the investment portfolio, constituting 48.8% with AED 332.2 billion, reflecting a 26.2% year-on-year increase. Investments in debt securities stand at AED 279.6 billion, representing 41.1% of total investments, with a 12.5% annual rise. Investments in equities have also seen significant growth, reaching AED 16.7 billion, up 38% year-on-year.

The statistics underscore the robust health and growth trajectory of the UAE banking sector, reflecting increased investor confidence and financial stability.

News Source: Emirates News Agency