Youssef Al Bustanji (Abu Dhabi)
Eligible cash liquidity available to national banks listed on the UAE capital markets (i.e. liquidity guaranteed to be obtained during the first quarter of 2024) increased by 9.4%, equivalent to an increase of 37 billion dirhams, to reach 430 billion dirhams by the end of December 2023, compared to 393 billion dirhams by the end of December. 2022, according to the financial statements disclosed by the banks until yesterday.
Eligible cash liquidity (cash and its equivalent), which includes bank balances with the Central Bank and other banks and financial institutions licensed in the country, which banks can obtain within three months, is considered one of the most important indicators that show the banks’ ability to face any sudden demand for liquidity in the local market. By customers and investors, as the availability of this type of liquidity contributes to enhancing confidence in the banking sector and enhances its stability, efficiency and durability.
The data of the twelve national banks listed on the Abu Dhabi and Dubai Financial Markets, which disclosed their annual data for the year 2023 so far, and which were collected by Al-Ittihad, show that they were able to attract new bank deposits amounting to about 313 billion dirhams, thus recording a growth of 14.5%, bringing Its total deposit balance reached 2.476 trillion dirhams by the end of 2023, compared to 2.163 trillion dirhams by the end of 2022, which indicates the continued state of recovery achieved by the UAE national economy, and its level of attractiveness for attracting new capital and investments.
The data also showed that these banks pumped about 151 billion dirhams in new loans and facilities to their customers during the year 2023, recording a growth in their credit portfolio by 8.9%, bringing their balance to 1.837 trillion dirhams by the end of December 2023, compared to 1.686 trillion dirhams by the end of 2022, which indicates rates The high growth recorded by the national economy during the period.
According to the data of listed national banks, they were able to achieve significant growth of about 47.4%, equivalent to an increase of 24.2 billion dirhams in their net profits recorded in 2023, rising to 75.3 billion dirhams, compared to 51.1 billion dirhams in 2022, as a result of the high demand for Loans and financing, accompanied by a decline in provisions made by banks to confront doubtful debts, and a decrease in costs relative to total revenues, are important indicators of a decline in risks in the local market for corporate and individual bank clients, and an improvement in the solvency of clients and their ability to fulfill their financial obligations on time. .
Disclosures issued by national banks indicate that the proposed cash distributions to shareholders so far have amounted to about 30.3 billion dirhams, awaiting approval by the banks’ general assemblies.
In addition, the value of the total assets of listed national banks increased by approximately 386 billion dirhams, or the equivalent of a growth of 11.6%, to reach 3.77 trillion dirhams by the end of 2023, compared to 3.38 trillion dirhams by the end of 2022.
The twelve banks account for more than 90% of the total assets of the 61 banks operating in the UAE, including 22 national banks and 39 foreign banks.
In terms of the value of assets, First Abu Dhabi Bank is considered the largest on the list of banks operating in the country, with total assets amounting to 1.17 trillion dirhams at the end of 2023, as the bank added about 60 billion new dirhams to its assets during the past year, compared to its value amounting to 1.11 trillion dirhams at the end of 2022.
It is followed by Emirates NBD Bank with assets worth 863 billion dirhams at the end of 2023, an increase of approximately 121 billion dirhams, compared to the value of its assets amounting to 742 billion dirhams at the end of 2022, then Abu Dhabi Commercial Bank with total assets worth 567 billion dirhams at the end of last year, compared to 498 billion dirhams. Approximately one billion dirhams by the end of 2022, as the bank was able to add about 69 billion dirhams to its assets during the year 2023.
In terms of deposits, First Abu Dhabi Bank also tops the list with a value of 780 billion dirhams at the end of last year, as the bank was able to attract about 80 billion dirhams of new deposits during the comparison period, followed by Emirates NBD Bank, whose deposit balance increased by about 82 billion dirhams to reach 585 billion dirhams. By the end of December 2022, compared to 503 billion dirhams by the end of 2022.
As for the balance of the deposit portfolio at Abu Dhabi Commercial Bank, it reached 363 billion dirhams by the end of the year 2022, compared to 309 billion dirhams at the end of 2022, recording an increase of 54 billion dirhams over the past year.
2024-02-07 21:13:58
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