UAE Banks Record $14.7 Billion in Short-Term Deposits with 8.9% Growth by May
RIYADH: Banks based in the United Arab Emirates attracted 54 billion dirhams ($14.7 billion) in short-term deposits in the first five months of this year, up 8.9 percent from December 2023, according to official data.
According to the latest data from the Central Bank of the United Arab Emirates, “three-month deposits” reached 659.01 billion dirhams by the end of May, Emirati news agency WAM reported.
These deposits, held for a fixed period of three months and usually offering a fixed rate of interest, constitute a significant portion of the short-term funds of the banking sector.
National banks dominated the segment, holding 90.9 percent of the total, equal to 598.9 billion dirhams, while foreign banks held 9.1 percent, or 60.02 billion dirhams, WAM reported.
This comes as the UAE’s leading banks continue to show strong capital positions in the second quarter with strong profits and improved asset quality.
According to New York-based global professional services firm Alvarez & Marcel, profit rose to Dh21.5 billion due to higher net interest income and a significant reduction in impairment charges.