UAE banks recorded the highest rate of investment in the history of banking business in the country during the month of May, to reach 414.9 billion dirhams.
According to Al-Bayan, banks' investments increased year on year by 44.6 billion dirhams, a growth of 12%, registering at the end of May of last year 370.3 billion dirhams, an increase of 15.9 Billion by the end of last April, with a monthly growth of 5.3% and an increase of 15.9 billion dirhams, a growth of 4% during the period from December 2019 to May 2020.
This unprecedented rise reveals the strength and durability of the banking sector in the face of the emerging Corona virus as a benefit of 19, especially since the increase in investments came in light of an unprecedented rise in the assets of the banking sector Significant increase in bank capital and reserves.
The highest rates
The monthly and annual statistics and reports of the Emirates Central Bank reveal that the banks' investments began in 2020 by recording the highest rates during the period from 2013 to January 2020, reaching by the end of last January 412.2 billion Dirhams, but it bounced back to the decline in February and March to reach 377.6 billion dirhams by the end of March with the emergence of the effects of the pandemic of the new Corona pandemic as a benefit of 19 on the banking sector, and then rose again to achieve by the end of April 394.2 billion dirhams, an increase of 16.6 billion dirhams, and continues to rise to achieve the highest rates ever At the end of last May.
4 types
The investments of banks operating in the UAE are divided into 4 types of investments, which are investment in securities that represent debts to others (debt securities), equity investments, and bonds kept To maturity, and other investments. Statistics reveal that the two types of bonds (debt securities and archived certificates) acquired 342.7 billion dirhams from bank investments by the end of May, which constitutes 82.6% of the total investments.
During the first five months of this year, debt securities rose from 241.4 billion dirhams at the end of December to 246.1 billion at the end of May, an increase of 4.7 billion and a growth of 3.6%, as investments increased Certificates kept up to maturity from 99.1 billion to 101.3 billion, up 2.2 billion and 2.2% growth, and banks increased their other investments from 43 billion to 49.4 billion, up 6.4 billion dirhams and 14.9% growth, while their investments in shares declined from 10.8 billion to 9.2 billion at the end of May, down 1.6 billion, 14.8% growth.
