UAE bank deposits at all-time high, official report shows

Deposits with UAE banks climbed to an all-time high at the end of the first half of 2013 while assets also peaked at their highest level and loans picked up sharply. Official data showed the UAE\'s 23 national banks and 28 foreign units are pushing ahead with a provisioning drive to bolster their financial base in the wake of the 2008 global fiscal distress, with allocations for loan loss provisions gaining around Dh500 million to reach their highest level of nearly Dh72.9 billion at the end of June. The figures by the Central Bank showed the combined deposits with the 51 banks swelled by around Dh9 billion to peak at Dh1,255.6 billion at the end of June, recording growth of 7.5 per cent in the first half and 0.7 per cent in June. Loans surged by nearly Dh16 billion in June to one of their highest levels of about Dh1,147.4 billion, their highest monthly growth in nearly a year. Personal loans increased by around Dh4 billion in June to Dh276.2 billion at the end of the month, recording growth of 4.4 per cent in the first half of 2013. The report showed the combined assets of the banks hit an all-time high of around Dh1,878.1 billion at the end of June, maintaining their position as having the largest bank asset base in the Middle East. The assets at the end of June were nearly Dh5 billion higher than their level at the end of May and Dh87 billion above the assets of Dh1,791 billion at the end of 2012. The figures showed banks\' shareholders equity, covering capital and reserves, dipped by around Dh5 billion to Dh267.9 billion at the end of June from Dh272.9 billion at the end of May after hitting their highest level of Dh300.1 billion in January. SOurce: WAM