UAE Banks Attract AED13.8 Billion In New Savings Deposits In Early 2024

Savings deposits in the UAE's banking sector, excluding interbank deposits, attracted approximately AED 13.8 billion during the first quarter of this year, according to the latest statistics from the Central Bank of the UAE (CBUAE).

The apex bank's statistics revealed that savings deposits in the banking sector reached AED 286.67 billion at the end of March 2024. This marks an increase of 8.9 percent, equivalent to AED 23.5 billion, on an annual basis compared to about AED 263.14 billion in March 2020.

Savings deposits at the end of March 2024 also saw a monthly increase of 3 percent, or AED 8.3 billion, compared to approximately AED 278.37 billion in February. Additionally, there was a 5.1 percent rise during the first quarter of this year compared to about AED 272.8 billion at the end of 2023.

The statistics indicated that demand deposits rose to AED 1.056 trillion at the end of last March, showing an annual growth of 15.02 percent compared to AED 918.9 billion in March 2023, an increase equivalent to AED 138 billion.

On a monthly basis, demand deposits increased by 0.09 percent or AED 1 billion compared to about AED 1.05 trillion in February. They also grew by about AED 37.5 billion or 3.7 percent during the first quarter of this year compared to AED 1.019 trillion at the end of last year.

Distribution of Demand Deposits

The distribution of demand deposits was as follows: AED 757.78 billion in local currency "dirham," accounting for 71.7 percent, and about AED 299.2 billion in foreign currencies, accounting for 28.3 percent.

Demand deposits have shown consistent growth over the past years, rising from AED 577.6 billion at the end of 2018 to AED 599.6 billion at the end of 2019, AED 696.8 billion at the end of 2020, AED 848 billion in 2021, and AED 907.3 billion in 2022.

Time Deposits See Notable Increase

According to the Central Bank's bulletin, time deposits reached AED 840.1 billion at the end of last March, with an annual increase of about 27.4 percent compared to approximately AED 659.6 billion in March 2023, an increase equivalent to AED 180.5 billion.

The local currency, the dirham, accounted for the largest share of time deposits at about 57.5 percent or AED 483 billion, while foreign currencies made up about 42.5 percent or AED 357.1 billion.

With inputs from WAM