Gross Banks' Assets Increase To AED 4.456 Trillion By End Of October 2024, Reports CBUAE

The Central Bank of the UAE (CBUAE) reported a 1.3% rise in gross banks' assets, including bankers' acceptances, from AED4.4 trillion at September's end to over AED4.456 trillion by October 2024. This growth reflects the overall positive trend in the banking sector's performance during this period.

Banks' deposits saw a notable increase of 1.5%, climbing from AED2,761.4 billion at September's close to AED2,802.5 billion by October's end. This surge was driven by a 1.2% rise in resident deposits and a significant 4.7% boost in non-resident deposits.

The money supply aggregate M1 rose by 1.5%, reaching AED909.9 billion at October's conclusion, up from AED896.3 billion in September 2024. This increase was primarily due to a substantial AED14.9 billion growth in monetary deposits, which outweighed a slight decline of AED1.3 billion in currency circulation outside banks.

Gross credit expanded by 0.6%, moving from AED2,161.9 billion at September's end to AED2,174.8 billion by October 2024's close. This growth was attributed to increases in both domestic credit by 0.6% and foreign credit by 0.7%. The domestic credit rise was driven by government sector credit increasing by 0.2%, public sector credit growing by 3%, and private sector credit rising slightly by 0.1%.

Resident deposit growth resulted from increases across various sectors: government sector deposits rose by 2.3%, government-related entities saw a 3.6% increase, and private sector deposits grew by 1.1%. These gains overshadowed a significant decrease of 13% in non-banking financial institutions' deposits.

The money supply aggregate M2 increased by 0.9%, reaching AED2,270.7 billion at October's end from AED2,249.6 billion in September 2024 due to elevated M1 levels and an additional AED7.5 billion in Quasi-Monetary Deposits.

Monetary Base Adjustments

The monetary base experienced a slight decline of 0.1%, decreasing from AED743.5 billion at September's end to AED743 billion by October's close in 2024.

This reduction was mainly due to an 11.4% drop in banks' and other financial corporations' current accounts and overnight deposits at CBUAE, despite increases in currency issued (up by 0.8%), reserve account (up by 0.05%), and monetary bills & Islamic certificates of deposit (up by 6.2%).

The money supply aggregate M3 also saw an increase of 1.3%, rising from AED2,719.8 billion at the end of September to reach AED2,754.7 billion by the end of October 2024.

With inputs from WAM