UAE bank deposits rose 0.3% in June to reach Dh3.4728 trillion, up from Dh3.4634 trillion at the end of May, according to figures released by the Central Bank of the UAE. The increase came alongside a rise in gross bank credit, which grew by Dh24.7 billion during the month, a signal that lending activity across the banking system continued to expand even as deposits built up.
For UAE residents and businesses tracking the health of the banking sector, the figures point to steady, broad-based growth rather than a sharp swing in either direction. Deposits and credit moved up together, and the details beneath the headline numbers show where that growth was concentrated.
Where deposit growth came from
Resident deposits rose 1.2% in June to Dh3.1812 trillion, the largest single driver of the overall increase. Non-resident deposits stood at Dh291.5 billion at the end of the month.
Within resident deposits, private-sector deposits rose 0.7% to Dh2.3272 trillion, while government-sector deposits increased 2.2% to Dh454.6 billion. Deposits held by government-related entities climbed 4.1% to Dh355 billion, and deposits of other financial corporations stood at Dh64.4 billion at the end of June.
Credit growth across domestic and foreign lending
Gross bank credit increased 0.9%, or Dh24.7 billion, rising from Dh2.7331 trillion to Dh2.7578 trillion during June. Domestic credit rose by a smaller Dh4.8 billion, or 0.2%, to reach Dh2.1754 trillion.
Foreign credit saw a sharper rise, increasing Dh19.9 billion, or 3.5%, to Dh582.4 billion. Credit extended to individuals rose by Dh6.8 billion over the same period, reflecting continued lending to consumers alongside broader credit expansion.
Money supply and bank balance sheets
Broader measures of money in the UAE economy also moved higher in June. M2 money supply increased 0.8% to Dh2.8766 trillion, while M3 reached Dh3.4263 trillion, up from Dh3.3934 trillion at the end of May. The UAE's monetary base stood at Dh783.5 billion at the end of June.
Banks' and other financial corporations' current accounts and overnight deposits held with the Central Bank of the UAE rose sharply, up 21.2% to Dh113.1 billion, pointing to higher liquidity being held with the central bank during the month.
Gross bank assets across the UAE banking system reached Dh5.5938 trillion at the end of June, rounding out a month in which deposits, credit, money supply, and total assets all moved upward in tandem.
Taken together, the Central Bank of the UAE's June data offers a snapshot of a banking sector that expanded on multiple fronts at once, with government-related entities and resident depositors driving deposit growth, and foreign lending outpacing domestic credit expansion for the month.
Reported by Khaleej Times.