Abu dhabi: Total banking sector assets in the UAE, including bankers' acceptances, rose by 0.6 percent month-on-month to exceed AED4.749 trillion at the end of April 2025, up from approximately AED4.719 trillion at the end of March.
According to Emirates News Agency, the Summary Report - Monetary and Banking Developments - April 2025 issued by the Central Bank of the UAE (CBUAE) indicated a 0.9 percent increase in total bank credit, reaching over AED2.259 trillion by the end of April. This growth was driven by a rise of AED12.3 billion in domestic credit and AED7.1 billion in foreign credit.
The increase in domestic credit was primarily due to a 0.7 percent rise in credit to the government sector, a 1.2 percent increase to the public sector, and a 0.6 percent rise in private sector credit. However, credit to non-banking financial institutions saw a 4.3 percent decline.
Bank deposits also experienced growth, rising by 1 percent month-on-month to surpass AED2.965 trillion by the end of April. This was largely due to a 0.1 percent increase in resident deposits, totaling over AED2.689 trillion, along with a significant 10.9 percent rise in non-resident deposits, amounting to AED275.6 billion.
Within resident deposits, government sector deposits increased by 0.9 percent, and private sector deposits rose by 1.1 percent. In contrast, deposits from non-banking financial institutions decreased by 9.2 percent, and those from government-related entities dropped by 6.5 percent.
The central bank reported a 2.6 percent increase in the monetary aggregate M1, which reached AED1.0119 trillion at the end of April, due to a AED26.9 billion increase in monetary deposits offsetting a AED1.2 billion decline in currency circulation outside banks.
However, the M2 aggregate saw a slight decline of 0.1 percent to AED2.435 trillion, driven by a AED27.8 billion decrease in quasi-monetary deposits. The M3 aggregate increased by 0.2 percent, mainly due to a AED6.6 billion rise in government deposits.
The monetary base declined by 1.7 percent, attributed to a 2.5 percent drop in issued currency and a 32.0 percent fall in reserve accounts, despite a significant surge in current accounts and overnight deposits at the central bank, alongside a 3.1 percent rise in monetary bills and Islamic certificates of deposit.
The central bank's foreign assets increased to AED937.5 billion, consisting of AED403.2 billion in bank balances and deposits abroad, AED490.1 billion in foreign securities, and AED44.1 billion in other foreign assets. The balance sheet totaled AED972.3 billion, with various assets and liabilities detailed in the report.