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Banks’ deposits close to Dh1tr

DUBAI — Total deposits held by all UAE banks reached around Dh1 trillion for the first time in 2010, showing the return of investor confidence in the country, according to data released by the UAE Central Bank on Tuesday.

Bank deposits jumped by Dh13.5 billion in July compared to the previous month, growing by Dh34.8 billion on a year-on-year basis. A sharp fall was also noted in the loan-to-deposit gap of the UAE’s banks, which touched Dh26.6 billion in July, compared to Dh40.2 billion in June.

Deposits stood at Dh998.9 billion by the end of July, compared with Dh985.4 billion at the end of June. Total loans outstanding remained almost unchanged at Dh1,025.5 billion. Total deposits year-to-date increased by Dh16.3 billion while total loans during the first seven months increased by Dh7.8 billion.

The data showed that Central Bank assets in July recorded a significant rise of Dh15.6 billion and stood at Dh1,554.4 billion, compared to Dh1,538.8 billion in June while total assets during the first seven month of the year increased by Dh35.3 billion. General provisions increased by Dh400 million to Dh37.3 billion in July, compared to Dh36.9 billion in June. During the year, it increased by Dh4.7 billion.

Personal loans issued by banks increased by Dh2 billion to Dh215.1 billion by the end of last month, compared to Dh213.1 billion in the previous month. Personal loans increased by Dh5.3 billion during the year. Letters of credit fell by Dh3.2 billion to Dh107.6 billion by the end of last month.

Separately, money supply (M1) in the UAE, the a measure, slowed to an annual 5.3 per cent growth rate in July from 6.3 per cent in June, according to the Central Bank data.

M2 money supply, which includes time and savings deposits, jumped by 5.2 per cent in July compared with 5.4 per cent in June, the central bank said.Money growth (M3), an indicator of future inflation, eased to 2 per cent from 2.1 per cent. M3 money supply includes demand deposits and currency outside banks.— abdulbasit@khaleejtimes.com