UAE Banks Record AED 54 Billion Surge In New 3-Month Deposits Over Five Months

UAE-based banks saw a significant influx of new "3-month" deposits, totalling over AED54 billion in the first five months of this year. This data comes from the latest statistics released by the Central Bank of the UAE (CBUAE).

By the end of May 2024, three-month deposits in UAE banks reached approximately AED659.01 billion. This marks an 8.9 percent increase from AED604.99 billion recorded in December 2023. National banks held a dominant share, accounting for 90.9 percent or AED598.9 billion, while foreign banks held 9.1 percent or AED60.02 billion.

Term deposits also saw substantial growth during this period. UAE-based banks attracted AED18.1 billion in term deposits within the first five months, bringing the total to AED227.71 billion by the end of May, up from AED205.4 billion at the end of 2023, reflecting an 8.6 percent increase.

National banks were responsible for 89.9 percent of these term deposits, amounting to AED204.8 billion, whereas foreign banks accounted for AED22.8 billion or 10.1 percent.

Six to Twelve-Month Term Deposits

Deposits with terms ranging from six months to twelve months grew by about AED15.2 billion in the first five months of this year, reaching approximately AED275.89 billion by May's end compared to around AED260.6 billion in December 2023, representing a growth rate of about 6 percent.

National banks held a significant portion of these deposits at 92.2 percent or more than AED254.4 billion, while foreign banks accounted for 7.8 percent or approximately AED21.42 billion.

Long-Term Deposits Over Twelve Months

For term deposits exceeding twelve months, there was a slight increase of 0.52 percent or AED230 million from December 2023's figure of AED44.25 billion to reach AED44.48 billion by May's end.

The majority of these long-term deposits were held by national banks at 94.1 percent or AED41.8 billion, with foreign banks holding the remaining 5.9 percent or AED2.63 billion.

This data highlights the robust performance and growing confidence in UAE-based banks across various deposit categories during the initial months of this year.

With inputs from WAM