The Banking Executive Magzine - July 2025 Issue

Gross Banks’ Assets Gross Banks’ Assets UP 1.9% AT END OF JUNE 2025 The Central Bank of the UAE (CBUAE) announced the increase in money supply aggregate M1 by 1.0%, from AED 1,015.6 billion at the end of May 2025 to AED 1,026.2 billion at the end of June 2025. The increase was due to AED 1.7 billion increase in currency in circulation outside banks and AED 8.9 billion increase in monetary deposits. According to the CBUAE's Monetary & Banking Developments for June 2025, the money supply aggregate M2 increased by 2.3%, from AED 2,474.0 billion at the end of May 2025 to AED 2,531.2 billion at the end of June 2025. M2 increased due to an elevated M1, and AED 46.6 bil- lion increase in Quasi Monetary De- posits. The money supply aggregate M3 also increased by 1.7%, from AED 2,948.1 billion at the end of May 2025 to AED 2,997.6 billion at the end of June 2025. M3 mainly in- creased due to the increase in M2, overriding the AED 7.7 billion de- crease in government deposits. The monetary base increased by 2.8%, from AED 836.7 billion at the end of May 2025 to AED 860.0 bil- lion at the end of June 2025. The in- crease in the monetary base was driven by increases in reserve ac- count by 6.8%, and banks & OFCs’ current accounts & overnight de- posits of banks at CBUAE by 61.2%, overriding the reductions in currency issued by 0.4% and monetary bills & Islamic certificates of deposit by 14.0%. Gross banks’ assets increased by 1.9% from AED 4,878.3 billion at the end of May 2025 to AED 4,973.3 bil- lion at the end of June 2025. Gross credit increased by 1.8% from AED 2,293.4 billion at the end of May 2025 to AED 2,334.3 billion at the end of June 2025. Gross credit in- creased due to the growth in domes- tic credit by AED 22.5 billion and foreign credit by AED 18.4 billion. The growth in domestic credit was due to increases in credit to the pri- vate sector by 2.1% and nonbanking financial institutions by 4.6%, while credit to the government sector de- creased by 0.4% and credit to the public sector (government-related entities) decreased by 2.3%. Banks’ deposits increased by 0.9%, from AED 3,018.5 billion at the end of May 2025 to AED 3,045.8 billion at the end of June 2025. The increase in bank deposits was driven by the growth in resident deposits by 1.7%, settling at AED 2,788.6 billion, over- shadowing the decrease in non- res- ident deposits by 7.2%, reaching AED 257.2 billion. Within the resident deposits; private sector deposits increased by 1.7%, government-related entities deposits increased by 2.3% and non-banking financial institutions deposits in- creased by 26.7% by the end of June 2025, while government sector de- posits decreased by 1.6%. the BANKING EXECUTIVE 40 ISSUE 199 JULY 2025