UAE banks’ gross assets jumped by 10.7% to more than AED3.9 trillion ($1.062 trillion) at the end of August 2023, compared to the previous year, the Central Bank of the UAE revealed.
The gross assets, which also include bankers’ acceptances, posted a 0.5% increase compared to AED3.8 trillion recorded at the end of July 2023.
The lenders’ total reserves at the Central Bank increased by 34.5% year-on-year to AED486.3 billion at the end of August, while gross credit went up by 5.5% to more than AED1.9 trillion.
Bank deposits reached around AED2.4 trillion in August, up by 10.9% year-on-year and 0.4% month-on-month.
Private sector bank deposits posted the biggest increase of 18% to approximately AED1.5 trillion.
Resident deposits went up by 13.7% year-on-year to AED2.19 trillion.
The UAE’s banking sector was previously forecast to post significant growth in 2022 and beyond, driven by advancements in technology and improvement in the global economy.
In its H1 2023 report, EY noted that the UAE banking sector could further benefit from the recent initiatives that have been introduced to boost the financial sector.
“The banking sector is expected to benefit further from the recent introduction of a host of regulatory measures, aimed at strengthening the country’s overall financial industry along with the Central Bank of the UAE’s vision to be among the top central banks globally in promoting monetary and financial stability…,” the report noted.