Aggregate Capital, Reserves Of UAE-Based Banks Increase To AED330.2 Billion By End Of Q2

The aggregate capital and reserves of banks operating in the UAE increased by 4.4%, reaching AED 330.2 billion by the end of Q2 2018 compared to a 1.5 percent quarterly increase at the end of the same period of 2017, according to CBUAE statistics.

The total capital adequacy ratio showed an increase of 3.4 percent during the second quarter of 2018, compared to a decrease of 0.5 percent during the corresponding period of 2017, and they continued to remain well above the 12.375 percent Capital Adequacy Ratio, which includes the 1.875 percent Capital Conservation Buffer requirement, and 8.5 percent Tier1 Ratio as prescribed by the CB regulations in compliance to Basel III guidelines. Banks are following Basel III principles for calculating the Capital Adequacy Ratios effective December 2017 in line with the Guidelines issued by the Central Bank.

Capital adequacy ratios measure the amount of a bank’s capital expressed as a percentage of its risk weighted credit exposures. A high capital adequacy ratio provides protection to depositors and promotes the stability and efficiency of the financial system of an economy.

At the end of the second quarter of 2018 total assets of banks operating in the UAE increased by 1.1 percent, reaching AED2748.9 billion, compared to a quarterly increase of 0.2 percent at the end of the second quarter of 2017. During the period between June 2017 and June 2018, the total assets of banks operating in the UAE increased by 4.4 percent.

Gross credit also increased by 0.9 percent at the end of June 2018, reaching AED1622.3 billion. On an annual basis, gross credit increased by 3.4 percent.

By the end of the second quarter of 2018, total deposits of resident and non-resident customers with banks operating in the UAE increased by 1.3 percent, reaching AED1684.3 billion, compared to a reduction of 0.8 percent (AED1589.1 billion) at the end of Q2 of 2017.

Resident deposits increased by 1.4 percent, amounting to AED1494.2 billion at the end of the second quarter of 2018, compared to a reduction of 0.3 percent at the end of the same period of 2017 reaching AED1409.3 billion. Non-resident deposits decreased by 0.3 percent to AED190.1 billion by the end of June 2018, compared to a 4.9 percent reduction at the end of the same period in 2017.

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