The UAE's Central Bank revealed on Tuesday that the total capital and reserves of the country's banks have surpassed Dh500 billion for the first time in history, reaching Dh502.6 billion by the end of July. This represents an annual increase of approximately 10.5% from Dh454.9 billion in July 2023. Over the first seven months of the year, these figures rose by about 2.7%, or Dh13.3 billion, from Dh489.3 billion at the end of 2023. The Central Bank clarified that these figures exclude loans and secondary deposits but include the current year’s profits.
National banks held approximately 86.3% of the total capital and reserves, amounting to Dh433.7 billion by the end of July, marking a 10.4% increase from Dh392.9 billion in July 2023. Foreign banks' share stood at 13.7%, reaching Dh68.9 billion, an increase of 11.1% from Dh62 billion in the same period.
Investments by banks also reached an all-time high of Dh691.2 billion by the end of July, reflecting a 19.3% annual increase from Dh579.5 billion in July 2023. Monthly investments grew by 1.6% compared to Dh680.2 billion in June. From the start of the year, these investments increased by about 8.8%, or Dh56.1 billion, from Dh635.1 billion at the end of last year.
Bonds held until maturity constituted the largest portion of banks’ investments, accounting for around 48.3% and reaching Dh333.9 billion by the end of July, a 25.1% annual increase. Investments in debt bonds amounted to about 41.9% of total investments, reaching Dh289.5 billion, marking a 15.8% increase year-on-year. Bank investments in stocks totaled Dh17 billion in July, up by 36% year-on-year and 1.8% month-on-month, while other investments amounted to Dh50.8 billion, a decrease of 1.7% month-on-month but a 1% increase year-on-year.
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