posted on 15/10/2012: 487 views
Domestic credit by UAE banks grew by around 3.2 per cent YoY in August although they were slightly down compared to the previous month.
Deposits with the banks recorded one of their biggest monthly increases of Dh13 billion in August after a big decline in June.
Figures by the Central Bank showed the surge in deposits boosted the combined assets of the country's 23 national banks and 28 foreign units by around Dhnine billion in August following a drop in July.
From around Dh1,056.8 billion in August 2011, total loans provided by the 51 banks operating in the second largest Arab economy grew to nearly Dh1,090.5 billion, an increase of about 3.2 per cent YoY, the report showed.
Lending also was up by around 1.8 per cent in the first eight months of 2012 but edged down by nearly 0.1 per cent in August compared with July.
Personal loans grew by nearly 3.6 per cent in the first eight months of 2012 and by 0.3 per cent over July.
Deposits climbed to one of their highest levels of around Dh1,127.1 billion at the end of August from Dh1,114.9 billion at the end of July after declining by around Dh18 billion in June, the Central Bank said in its latest monthly report.
The surge in deposits boosted the banks' combined assets to Dh1,733.8 billion at the end of August from Dh1,724.6 billion at the end of July, maintaining their position as having the largest financial base in the Arab banking sector.
The report showed UAE banks are pushing ahead with a provisioning drive to consolidate their position, allocating around Dh900 million for non-performing loans (NPL) provisions in August. This boosted the total loan loss provisions taken by the banks to a record Dh64.2 billion, an increase of Dh8.9 billion in the first eight months.
With their collective capital standing at Dh277.9 billion at the end of August, the largest in the Arab banking sector, the combined capital adequacy ratio of UAE banks stood at as high as 20.8 per cent at the end of June, according to the Central Bank which put Tier 1 adequacy at 16.8 per cent. – Emirates 24|7
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