Gross banks’ assets up 1.9% to Dhs4,973.3 billion at end of June 2025: CBUAE
- Last updated: September 8, 2025 | 19:02
The Central Bank of the UAE (CBUAE) announced the increase in money supply aggregate M1 by 1.0%, from Dhs 1,015.6 billion at the end of May 2025 to Dhs 1,026.2 billion at the end of June 2025. The increase was due to Dhs 1.7 billion increase in currency in circulation outside banks and Dhs 8.9 billion increase in monetary deposits.
According to the CBUAE's Monetary & Banking Developments for June 2025, the money supply aggregate M2 increased by 2.3%, from Dhs 2,474.0 billion at the end of May 2025 to Dhs 2,531.2 billion at the end of June 2025. M2 increased due to an elevated M1, and Dhs 46.6 billion increase in Quasi Monetary Deposits.
The money supply aggregate M3 also increased by 1.7%, from Dhs 2,948.1 billion at the end of May 2025 to Dhs 2,997.6 billion at the end of June 2025. M3 mainly increased due to the increase in M2, overriding the Dhs 7.7 billion decrease in government deposits.
The monetary base increased by 2.8%, from Dhs 836.7 billion at the end of May 2025 to Dhs 860.0 billion at the end of June 2025. The increase in the monetary base was driven by increases in reserve account by 6.8%, and banks & OFCs’ current accounts & overnight deposits of banks at CBUAE by 61.2%, overriding the reductions in currency issued by 0.4% and monetary bills & Islamic certificates of deposit by 14.0%.
Gross banks’ assets increased by 1.9% from Dhs 4,878.3 billion at the end of May 2025 to Dhs 4,973.3 billion at the end of June 2025.
Gross credit increased by 1.8% from Dhs 2,293.4 billion at the end of May 2025 to Dhs 2,334.3 billion at the end of June 2025. Gross credit increased due to the growth in domestic credit by Dhs 22.5 billion and foreign credit by Dhs 18.4 billion. The growth in domestic credit was due to increases in credit to the private sector by 2.1% and nonbanking financial institutions by 4.6%, while credit to the government sector decreased by 0.4% and credit to the public sector (government-related entities) decreased by 2.3%.
Banks’ deposits increased by 0.9%, from Dhs 3,018.5 billion at the end of May 2025 to Dhs 3,045.8 billion at the end of June 2025. The increase in bank deposits was driven by the growth in resident deposits by 1.7%, settling at Dhs 2,788.6 billion, overshadowing the decrease in non- resident deposits by 7.2%, reaching Dhs 257.2 billion.
Within the resident deposits; private sector deposits increased by 1.7%, government-related entities deposits increased by 2.3% and non-banking financial institutions deposits increased by 26.7% by the end of June 2025, while government sector deposits decreased by 1.6%.
WAM