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29 March 2024

Central Bank deposits double

UAE Central Bank (FILE)

Published
By Staff

The UAE Central Bank nearly doubled its deposits with banks abroad during the first four months of 2011 after a sharp increase in deposits by banks and certificates of deposits (CDs) issued by the central bank.

Investment abroad also swelled by nearly Dheight billion to push the central bank’s total assets to one of their highest levels of nearly Dh277 billion at the end of April, according to figures published by the central bank.

From around Dh44.5 billion at the end of 2010, the central bank’s deposits with other banks, mostly abroad, leaped to nearly Dh88 billion at the end of April.

Held to maturity investments surged to about Dh183 billion from nearly Dh175.1 billion in the same period, the report showed.

Deposits by banks with the central bank gained around Dh17 billion to climb to nearly Dh83.3 billion at the end of April.

CDs issued by the central bank to the UAE’s 51 banks totalled around Dh118 billion at the end of April, an increase of nearly Dh24 billion from their level of about Dh94 billion at the end of 2010.

The surge was mainly in Shariah-compliant CDs issued in late 2010 as part of a central bank plans to tap the resources of the country’s eight Islamic banks. At the end of April, Islamic CDs balance stood at around Dh12 billion.

The increases boosted the central bank’s total assets by around Dh48.6 billion to Dh227.5 billion at the end of April from Dh228.9 billion at the end of 2010. The level at the end of April was the second highest in nearly three years after they hit an all time high of about Dh285 billion at the end of 2007.

The report showed the central bank’s capital and reserves swelled by more than Dhone billion to peak at nearly Dh17.15 billion at the end of March from Dh16.04 billion at the end of 2010. Compared with April last year, they grew by about seven per cent, according to the central bank.

In a statement after a board meeting last year, the central bank expected better performance in fiscal 2010-2011 after a 14 per cent fall in profits in 2009.

The statement projected the central bank’s net profits to surge from around Dh3.18 billion in 2009 to nearly Dh3.67 billion in 2010 and Dh3.7 billion in 2011.

Total revenue for 2011 was put at about Dh4.8 billion while expenses were projected at Dh1.11 billion, including interest on certificates of deposits.

A sharp fall in interest income depressed the central bank’s net profits by 14.4 per cent in 2009 but its investment income more than doubled through the year.

From Dh3.722 billion in 2008, the Central Bank’s net income dipped to Dh3.184 billion in 2009, the central bank said Bank said in its 2009 report.

The decline was caused mainly by a plunge in interest income from a record Dh5.688 billion in 2008 to only Dh461 million in 2009.