UAE banks' investments surpass AED650 billion mark to reach their highest level in history

Banks
Photo: WAM

UAE banks' investments exceeded the AED650 billion mark by the end of February 2024, reaching its highest level in history, according to the latest statistics from the Central Bank of the UAE (CBUAE), WAM reports. 

Statistics from the Central Bank, released in today's Banking Indicators Report, showed a 20.6 percent year-on-year increase in investments of banks operating in the country, reaching AED652.7 billion by the end of February 2024, compared to about AED541.4 billion in February 2023, an increase equivalent to AED111.3 billion over 12 months.

According to the Central Bank, bank investments increased by 2 percent on a monthly basis compared to AED640.1 billion in January 2024, an increase equivalent to AED12.6 billion in one month. Additionally, they increased by about 2.9 percent since the beginning of the current year, or the equivalent of AED18.3 billion, compared to about AED634.4 billion at the end of the previous year.

As of the maturity date, held-to-maturity bonds accounted for the largest share of bank investments, reaching approximately 49.1 percent with a value of AED320.6 billion by the end of February 2024. This represented a monthly increase of 3.02 percent and a yearly increase of about 39.2 percent.

Banks' investments in securities representing debts to others, specifically "debt bonds," constituted around 40.9 percent of total investments, reaching AED267 billion by the end of February 2024. This marked a monthly increase of about 1.3 percent and a yearly increase of 7.3 percent.

Bank investments in stocks reached AED15.8 billion in February 2024, indicating a yearly increase of approximately 31.7 percent compared to AED12 billion in February 2023. However, there was a monthly decrease of 1.25 percent compared to around AED16 billion in January 2024.

Other investments for banks amounted to approximately AED49.3 billion at the end of February 2024, which is the same figure recorded in the previous month of January.

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