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Abu Dhabi: Ali Asaad
Banks operating in the country increased their investment portfolio during the first half of this year, which increased by 10.3% (34.3 billion AED) to 370.1 billion dirhams by the end of the year. June, against 332.8 billion dirhams at the end of last year. Yesterday, the country's banks concentrated their investments on debt securities, which increased by 11.6% (an increase of 24.4 billion dirhams) to 235.3 billion dirhams at the end of June, or 64, 1% of the total portfolio of banks. , And its equity investment increased by 3% (an increase of (AED 300 million) to AED 10.4 billion and its investments in held-to-maturity securities increased by 8.1% AED 87.8 billion at the end of June.
Banks increased their capital in the first half of this year, up 2.7% to AED 364.8 billion at the end of June, while banks secured their financial position and the quality of their badets. taking adequate measures to deal with irregular debts and outstanding interests. This provision amounted to 97.3 billion AED, or 7.6%, and general provisions increased by 13.5% to 35.4 billion AED.
The cost of deposits with banks stabilized in the first half of the year at 1.8%, while the yield on loans rose from 5.5% at the end of 2018 to 5.4% at the end of June. The latest indicators show high liquidity among banks operating in the UAE: the liquidity ratio for the first half of this year went from 17.5% to 17.6%, while the index of loans to fixed badets reached 82.1%, a good indicator against international standards. The capital adequacy of the first and second capital levels increased from 17.2% to 17.9% at the end of June, compared to 17.5% at the end of last year. 16.7% and the common capital index has increased
(CET1) from 14.3% to 14.9%, these indicators are well above the requirements of the Central Bank and Basel 3. The Emirates banking sector is the largest sector in the region, with a total of badets of 90.1 billion AED since the beginning of the year. The total badets of these banks amounted to AED 2958.6 billion at the end of June, of which 12.6% of the 38 foreign banks, while the badets of the 21 national banks accounted for 87 , 4% of total badets. The number of Islamic banks in the country represents 19.1% of the total badets of the banking sector, while the share of "51" traditional banks represents 80.9% of the total badets of the banking sector.
AED 305 billion of central bank reserves in June
Total bank reserves of the Central Bank of the United Arab Emirates increased to AED 305 billion at the end of the first half of 2019, an increase of 2.5 percent to AED 7 billion from AED 298 billion in May.
According to the report on bank indicators of the Central Bank of the United Arab Emirates (UAE), reserves increased from AED 147.1 billion to AED 155.8 billion at the end of June, while current accounts reached AED 24.7 billion.
On the other hand, the obligatory bank reserve item increased from AED 126.3 billion in May to AED 124.8 billion.
At the credit level, the credit balance to the industrial and commercial sector reached about 815.6 billion AED at the end of June, an increase of 1.1% over the previous month. While the credit to the government amounted to 201.6 billion dirhams.
The cost rate on bank deposits was maintained at 1.8% at the end of June and the banks' stable loans-to-resources ratio reached 82.1%.
Special provisions for banks and overdue interest reached AED 97.3 billion in June, up from EAF 94.5 billion in May.
Certificates of deposit increase to 155.8 billion dirhams
The Central Bank of the United Arab Emirates (UAE) reached a record high in the first half of 2019, after reaching 155.8 billion dirhams at the end of June, according to the bank's statistics, which show that the Bank of Mexico is the largest bank in the world. it is on the verge of withdrawing excess liquidity from banks.
As a sign of the central bank's return to this trend, excess liquidity was withdrawn in June this year, up to 8.8 billion dirhams compared to May of the same year.
In the first three months of this year, the central bank continued to remove excess liquidity from the market due to its availability from the country's banking system, generally to prevent banks from using them in an inconsistent manner. with its monetary policy. Applied to the service of the national economy.
The Central Bank figures show that the value of liquidity withdrawn from the beginning of 2019 to the end of February amounted to about 8 billion dirhams before returning to pump some in March, the balance in certificates of deposit rising at about 139.2 billion dirhams.
In April of this year, the central bank resumed its approach to liquidity withdrawal, which also continued in May and June.
(WAM)
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