Bank investments in UAE cross Dhs774 billion by end of April 2025

Investments by banks operating in the UAE continued their upward trend, reaching Dhs774.3 billion by the end of April 2025. This marks a 16.2% annual increase compared to April 2024 and a 1.4% rise from March 2025.

According to banking indicators released by the Central Bank of the UAE (CBUAE), investments in debt securities grew to Dhs352.4 billion by the end of April. Meanwhile, securities held to maturity totalled Dhs345.8 billion.

Banks also invested Dhs19.3 billion in stocks and Dhs56.8 billion in other investment instruments.

Total bank credit rose to over Dhs2.259 trillion, reflecting an annual growth of 9.5%. Of this, domestic credit accounted for approximately Dhs1.881 trillion, while foreign credit reached Dhs378.3 billion.

Bank deposits exceeded Dhs2.965 trillion, comprising Dhs2.689 trillion in resident deposits, Dhs275.6 billion in non-resident deposits.

A breakdown of investments by emirate noted that Abu Dhabi banks took the lead with Dhs 408.9 billion, followed by Dubai with Dhs 296 billion, and other emirates at Dhs69.5 billion.

According to the Summary Report - Monetary & Banking Developments - April 2025 issued recently by the Central Bank of the UAE the total banking sector assets in the UAE, including bankers’ acceptances, rose by 0.6 per cent month-on-month to exceed Dhs4.749 trillion at the end of April 2025, up from approximately Dhs4.719 trillion at the end of March.

According to the report total bank credit increased by 0.9 per cent to surpass Dhs2.259 trillion at the end of April, compared to Dhs2.240 trillion at the end of March, driven by a rise of Dhs12.3 billion in domestic credit and Dhs7.1 billion in foreign credit.

The growth in domestic credit was attributed to a 0.7 per cent increase in credit to the government sector, a 1.2 per cent increase to the public sector (government-related entities), and a 0.6 per cent increase to the private sector. Meanwhile, credit to non-banking financial institutions declined by 4.3 per cent.

Total bank deposits also rose by 1 per cent month-on-month to exceed Dhs2.965 trillion at the end of April, compared to Dhs2.936 trillion at the end of March.

This increase was driven by a 0.1 per cent rise in resident deposits, which reached over Dhs2.689 trillion, in addition to a 10.9 per cent increase in non-resident deposits to Dhs275.6 billion.

Within resident deposits, government sector deposits rose by 0.9 per cent, and private sector deposits increased by 1.1 per cent. However, deposits from non-banking financial institutions fell by 9.2 per cent, and deposits from government-related entities declined by 6.5 per cent.

The central bank also reported a 2.6 per cent increase in the monetary aggregate M1, which reached Dhs1.0119 trillion at the end of April, up from Dhs986.2 billion at the end of March. This was due to a Dhs26.9 billion increase in monetary deposits, which offset a Dhs1.2 billion decline in currency in circulation outside banks.

Conversely, the M2 aggregate declined by 0.1 per cent to Dhs2.435 trillion at the end of April, compared to Dhs2.4377 trillion in March, driven by a Dhs27.8 billion fall in quasi-monetary deposits.

The M3 aggregate increased by 0.2 per cent from Dhs2.8937 trillion in March to Dhs2.8982 trillion in April, mainly due to a Dhs6.6 billion increase in government deposits.

Data also showed a 1.7 per cent decline in the monetary base, from Dhs833.1 billion in March to Dhs819 billion in April, attributed to a 2.5 per cent drop in issued currency and a 32.0 per cent fall in reserve accounts, despite a significant 159.8 per cent surge in current accounts and overnight deposits held by banks and other financial institutions at the central bank, as well as a 3.1 per cent rise in monetary bills and Islamic certificates of deposit.

Meanwhile, the central bank’s foreign assets increased to Dhs937.5 billion at the end of April, compared to Dhs935.2 billion at the end of March.

As of the end of April, these foreign assets comprised Dhs403.2 billion in bank balances and deposits abroad, Dhs490.1 billion in foreign securities, and Dhs44.1 billion in other foreign assets.

The central bank’s balance sheet totalled Dhs972.3 billion, with liabilities and capital consisting of Dhs449.1 billion in current accounts and deposit accounts, Dhs279.9 billion in monetary bills and Islamic certificates of deposit, Dhs165.2 billion in currency notes and coins in circulation, Dhs33.2 billion in other liabilities, and Dhs45 billion in capital and reserves.

On the asset side, the balance sheet comprised Dhs210.9 billion in cash and bank balances, Dhs208 billion in deposits, Dhs516.8 billion in investments, Dhs0.5 billion in loans and advances, and Dhs36.2 billion in other assets.

Meanwhile, Commercial Bank of Dubai (CBD) has announced its financial results for the second quarter and first half of 2025, achieving a remarkable milestone of 20 consecutive quarters of profit growth.

The Bank reported a net profit before tax of Dhs1.862 billion, representing a 16.7 per cent increase compared to the same half last year.

WAM