Gross banks’ assets up by 1.6% to Dhs4,636.8b at end of February

The Central Bank of the UAE (CBUAE) announced the increase in money supply aggregate M1 by 1.8%, from Dhs 965.3 billion at the end of January 2025 to Dhs982.9 billion at the end of February 2025. The increase was due toDhs4.1 billion growth in currency in circulation outside banks andDhs13.5 billion rise in monetary deposits.

Gross banks’ assets, including bankers’ acceptances, increased by 1.6% fromDhs4,562.3 billion at the end of January 2025 toDhs4,636.8 billion at the end of February 2025.

According to the apex bank’s Monetary & Banking Developments - February 2025, the money supply aggregate M2 increased by 1.8%, increasing fromDhs2,319.3 billion at the end of January 2025 toDhs2,361.9 billion at the end of February 2025. M2 increased because of an elevated M1, andDhs25.0 billion rise in Quasi-Monetary Deposits.

The money supply aggregate M3 also increased by 0.8%, fromDhs2,789.8 billion at the end of January 2025 toDhs2,813.4 billion at the end of February 2025. M3 increased mainly due to the growth in M2, overriding the Dhs 19.0 billion decrease in government deposits.

The monetary base increased by 3.1%, fromDhs791.9 billion at the end of January 2025 toDhs816.6 billion at the end of February 2025. The growth in the monetary base was driven by increases of; 3.4% in currency issued, 11.4% in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE and 6.2% in monetary bills & Islamic certificates of deposit, overshadowing the 6.1% decrease in reserve account.

Gross credit increased by 0.9% fromDhs2,186.3 billion at the end of January 2025 toDhs2,205.1 billion at the end of February 2025. Gross credit increased due the combined increases in domestic credit byDhs1.7 billion and foreign credit byDhs17.1 billion. The growth in domestic credit was due to increases in credit to the; private sector by 0.7% and non-banking financial institutions by 5.2%. Credit to the public sector (government-related entities) decreased by 2.0%, and credit to the government sector decreased by 1.4%.

Banks’ deposits increased by 1.2%, fromDhs2,840.7 billion at the end of January 2025 toDhs2,874.6 billion at the end of February 2025. The increase in bank deposits was due to the growth in resident deposits by 0.8%, settling atDhs2,625.5 billion and in non-resident deposits by 5.1%, reachingDhs249.1 billion.

Within the resident deposits; government-related entities deposits increased by 3.8%, private sector deposits increased by 1.4% and non-banking financial institutions deposits increased by 5.6%, while deposits to the government sector decreased by 4.0% by the end of February 2025.

Bank of Sharjah reports strong Q1 2025 results with 45% surge in net profit toDhs116 million

Bank of Sharjah has announced a strong start to 2025, posting a net profit ofDhs116 million for the first quarter ended March 31, 2025, marking a 45% increase compared toDhs80 million in Q1 2024.

The solid performance follows the Bank’s remarkable turnaround in 2024 and reflects continued momentum driven by sound strategy, disciplined risk management, and improved operational efficiency.

The Bank’s first-quarter results were underpinned by a resilient balance sheet, prudent asset allocation, and a sustained focus on business growth. Operating income rose toDhs201 million, up 40.6% year-on-year, while the Bank continued to demonstrate its commitment to maintaining cost discipline, building on the positive trajectory established in 2024.

Commenting on the results, Sheikh Mohammed bin Saud Al Qasimi, Chairman of Bank of Sharjah, said, “I am pleased to announce an exceptional start to 2025, as we achieved record profitability in the first quarter. This performance reinforces our trajectory of sustainable growth, the strength of our strategic initiatives and the resilience of our business model.” “The UAE’s dynamic economic environment continues to offer compelling opportunities, and we remain well-positioned to leverage them,” added Sheikh Mohammed bin Saud Al Qasimi.

The Bank’s Q1 2025 disclosure, released through the Abu Dhabi Securities Exchange (ADX), revealed a nearly 55% increase in profit before tax toDhs130 million. As of March 31, 2025, total assets reachedDhs44.8 billion, with customer deposits rising toDhs30.5 billion, reflecting strong market confidence and customer loyalty. Liquidity and capital adequacy ratios remained comfortably above regulatory thresholds, reinforcing the Bank’s robust financial standing.

The Q1 2025 performance builds on the Bank’s spectacular turnaround in 2024, where it reported a profit before tax ofDhs416 million (AED385 million after tax), reversing a loss ofDhs275 million in 2023. The strong results confirm the success of management’s transformation efforts and signals continued growth in the months ahead.

Nasdaq Dubai, the region’s international financial exchange, and AIX CSD, the central securities depository of Astana International Exchange, today announced the launch of a direct CSD link between the two markets. The launch was announced during the Capital Market Summit 2025, hosted by Dubai Financial Market (DFM), marking a significant step in enhancing regional financial connectivity and enabling more efficient post-trade settlement for cross-listed securities.

WAM