AED 548.5 billion UAE banks' investments by the end of March to the highest level in their history

The investments of banks operating in the country exceeded AED 548 billion at the end of March, achieving the highest level in their history, according to the latest statistics of the Central Bank of the UAE.

Central Bank statistics, issued in the Banking Indicators Report, showed an increase in the investments of banks operating in the country on an annual basis by 16% to reach AED 548.5 billion at the end of last March, an increase equivalent to AED 75.8 billion, compared to about AED 472.7 billion in March 2022.

According to the Central Bank, banks' investments increased month-on-month by 1.3% compared to AED 541.4 billion in February, an increase equivalent to AED 7.1 billion in one month.

According to Central Bank statistics, securities representing debts to others ("debt securities") accounted for the largest share of banks' investments by about 45.6% while reaching AED 250.1 billion at the end of last March, an increase on a monthly basis by 0.5% compared to about AED 248.9 billion in February.

The share of banks' investments in securities held to maturity amounted to about 43% of the total investments with a total of AED 236.3 billion at the end of March, an increase on an annual basis of 74.1% compared to AED 135.7 billion in March 2022, and an increase on a monthly basis by about 2.6% compared to AED 230.3 billion in February 2023.

Banks' equity investments reached AED 11.9 billion at the end of March, up 0.8% year-on-year compared to AED 11.8 billion in December 2022, and down 0.8% month-on-month and 29.6% year-on-year.

According to CBE statistics, other investments of banks amounted to about AED 50.2 billion at the end of March, the same level recorded in February and January, while they increased year-on-year by 11.8% compared to AED 44.9 billion in March 2022.

It is noteworthy that banks' investments do not include the bank's deposit with the Central Bank in the form of certificates of deposit and cash bills of exchange.