Total UAE banking reserves rise to over $81bn

Central Bank of the UAE says reserves have increased by $1.36bn in first five months of 2019
Total UAE banking reserves rise to over $81bn
By Sam Bridge
Fri 12 Jul 2019 10:05 AM

Total banking reserves at the Central Bank of the UAE totalled AED298 billion ($81.1 billion) by the end of May, a growth of AED5 billion during the past five months.

The rise, according to CBUAE's Banking Indicators Report cited by state news agency WAM, was driven by an increase in the bank's reserve requirements which rose to AED126.3 billion in May, with the current accounts up to AED24.5 billion and certificates of deposits to AED147.1 billion.

In terms of credit, loans provided to the government rose by 1.6 percent to AED204.8 billion in May, with business and industrial sector credit hitting AED807 billion.

The average cost on bank deposits stood at 1.1-1.8 percent with the lending to stable resources ratio ranging from 81.2-82.4 percent, WAM added.

Last week, Alvarez & Marsal's latest UAE Banking Pulse for Q1 said UAE banks are generating healthy earnings despite tougher economic conditions.

The report said the fundamental theme in the three-month period to the end of March is a surge in profitability, underpinned by increase in loans and advances, and a stabilised yield on credit.

It found that overall operating income has risen significantly from Q4 2018 driven by non-interest income, off-setting decrease in interest income.

Alvarez & Marsal’s research compared the data of the nine largest listed banks in the UAE.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.