UAE Banking Sector Marks AED 13.8 Billion Increase In Savings Deposits In Q1 2024

The Burj Khalifa in Dubai, UAE Nick Fewings/Unsplash

Savings deposits in the UAE's banking sector registered about AED 13.8 billion during the first quarter of this year, as per Central Bank of the UAE (CBUAE) data. This figure excludes interbank deposits.

According to the data, the savings deposits reached AED 286.67 billion at the end of March 2024, marking an 8.9% increase or equivalent of AED 23.5 billion compared to AED 263.14 billion in March 2023, WAM reported.

By the end of March 2024, savings deposits witnessed an increase of 3% from or equivalent to AED 8.3 billion compared to about AED278.37 billion in February. It also increased by 5.1% in the first quarter, marking an increase from AED 272.8 billion at the end of 2023.

Furthermore, the demand deposits in the UAE's banking sector rose to AED 1.056 trillion by the end of March, marking a 15.02% increase from AED 918.9 billion in March 2023, which is an increase of AED 138 billion.

Demand deposits rose on a monthly basis by 0.09 percent, or the equivalent of AED 1 billion, compared to about AED1.05 trillion in the previous February. They also increased by about AED 37.5 billion or 3.7 percent during the first quarter of this year, compared to AED 1.019 trillion at the end of last year.

The demand deposits were divided as follows: AED 757.78 billion in local currency (dirham), making up 71.7%, and AED 299.2 billion in foreign currencies, making up 28.3%.

Over the last few years, the demand deposits have been growing from AED 577.6 billion at the end of 2018 to AED 599.6 billion at the end of 2019. It was AED 696.8 billion at the end of 2020, AED 848 billion in 2021, and AED 907.3 billion in 2022.

According to the Central Bank's bulletin, time deposits in the UAE reached AED 840.1 billion by the end of last March, marking a 27.4% increase from AED 659.6 billion in March 2023.

Most of the time deposits were in the local currency, the dirham, making up 57.5% (AED 483 billion) while foreign currencies made up 42.5% (AED 357.1 billion).

Leading global brand valuation consultancy Brand Finance's 2024 Banking 500 report disclosed in April that Abu Dhabi Commercial Bank (ADCB)'s value has increased by 8.7% compared to last year, reaching AED 10.5 billion.