UAE National Bank provides $201 billion in financing as of April

Image source: WAM

The Central Bank of the United Arab Emirates (CBUAE) said that the national bank’s credit financing to the industrial and commercial sector had increased by 5.8 percent, or $11.1 billion (AED40.6 billion), in the past 12 months to April 2023, according to data from the state-run bank. AED 737 billion.news agency WAM.

The latest data from the CBUAE showed that Bank Negara’s financing to the business and industrial sectors increased to AED737 billion, compared to AED697 billion in April 2022.

The top lender said Bank Negara increased credit balances in the two sectors by AED2.1 billion, or 0.3 percent, in April, up from AED735.2 billion a month earlier.

As of the end of April, the National Bank had extended 90 percent of its accumulated credit balance of AED818.9 billion to the commercial and industrial sector in the UAE, while foreign banks provided 10 percent, or AED81.6 billion.

China University of Architecture and Engineering Abu Dhabi banks provided AED365.6 billion in credit to these industries as of the end of April, banks in Dubai provided AED351.3 billion, while banks in other emirates provided AED102 billion during the review period, it said.

The central bank said the commercial and industrial sector received credit financing mainly from conventional banks, providing AED676 billion, or 82.5 percent of the total, while Islamic banks contributed AED143.4 billion, or 17.5 percent.

UAE Bank Investment

In early June, CBUAE says bank investment hits record high 549 billion dirhams By the end of March, it reached the highest level in the country’s history.

Bank investment surged 16% year-on-year compared to March 2022’s AED473 billion, the central bank report showed. Bank investments rose 1.3% month-on-month from AED541.4 billion in February.

Securities accounted for the majority of the bank’s investments, accounting for about 45.6 percent, or AED 250.1 billion, during the period under review.

Held-to-maturity securities accounted for 43% of total investments in March, amounting to AED 236.3 billion, a year-on-year increase of 74.1% compared to AED 135.7 billion in March 2022. Monthly held-to-maturity securities surged 2.6 billion to reach AED230.3 billion by February 2023.

Investments in bank equities reached AED11.9 billion in March, up 0.8 percent from around AED11.8 billion in December 2022.

read: Total assets of UAE banks hit AED3.8 trillion in April