UAE banks’ deposits increased 0.3% in June to Dh3.4728 trillion, while gross bank credit rose by Dh24.7 billion during the month, according to the latest data from the Central Bank of the UAE (CBUAE).
Bank deposits increased from Dh3.4634 trillion at the end of May, with growth driven by a 1.2% rise in resident deposits to Dh3.1812 trillion. Non-resident deposits stood at Dh291.5 billion at the end of June.
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Within resident deposits, private-sector deposits made the largest contribution to growth, rising 0.7 per cent during June to Dh2.3272 trillion and contributing 0.5 percentage points to overall growth.
Government-sector deposits increased 2.2 per cent to Dh454.6 billion, while deposits held by government-related entities (GREs) rose 4.1 per cent to Dh355 billion. Deposits of other financial corporations stood at Dh64.4 billion.
Meanwhile, gross bank credit increased 0.9 per cent, or Dh24.7 billion, from Dh2.7331 trillion at the end of May to Dh2.7578 trillion at the end of June.
The increase was driven by a Dh4.8 billion, or 0.2 per cent, rise in domestic credit to Dh2.1754 trillion and a Dh19.9 billion, or 3.5 per cent, increase in foreign credit to Dh582.4 billion.
Within domestic credit, lending to the government sector, GREs and other financial corporations increased 0.6 per cent, 1.5 per cent and 11.4 per cent, respectively.
Credit extended to individuals also increased by Dh6.8 billion, contributing 0.3 percentage points to overall domestic credit growth.
Money supply expands
The central bank said the M2 money supply increased 0.8 per cent in June to Dh2.8766 trillion. The increase was attributed to a 4.1 per cent rise in GRE deposits and a 0.9 per cent increase in corporate deposits, with each contributing 0.5 percentage points to monthly M2 growth.
M3 also increased during the month, reaching Dh3.4263 trillion at the end of June, compared with Dh3.3934 trillion at the end of May.
Government-sector deposits rose 1.9 per cent to Dh549.7 billion, contributing 0.3 percentage points to the monthly growth in M3.
The UAE’s monetary base stood at Dh783.5 billion at the end of June, while banks’ and other financial corporations’ current accounts and overnight deposits with the CBUAE increased 21.2 per cent during the month to Dh113.1 billion.
Gross bank assets reached Dh5.5938 trillion at the end of June, according to the CBUAE report.
Source: Khaleej Times