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19 March 2024

Central Bank sees higher profits

Published

The UAE Central Bank said on Wednesday it expected to net around Dh3.47 billion in 2011 and the profits could swell further in 2012.

During a board meeting, the Bank projected total revenue at nearly Dh4.322 billion in 2012 and spending at Dh822 million.

“Net profits are projected at Dh3.5 billion in 2012 compared with an expected profit of nearly Dh3.47 billion in 2011,” it said in a statement.

It gave no other details of its operations but in a previous report, the Central Bank put its net earnings at around dh1.92 billion in the first half of 2011.

The report also gave no breakdown for the profits but showed assets swelled to Dh273.4 billion at the end of June from Dh2298.9 billion at the end of March. Deposits rose by around Dh30 billion to Dh73.6 billion from Dh44.5 billion.

In the liabilities side, bank deposits with the central bank grew to around dh82.7 billion from Dh68.6 billion in the same period while the balance of certificates of deposits issued by the central bank to the country’s 23 national banks and 28 foreign units soared to Dh118.1 billion from Dh94 billion.

After a board meeting early this year, the central bank expected better performance in fiscal 2010-2011 following a 14 per cent fall in profits in 2009.

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

The Central Bank has said in a recent statement it was sticking to its policy of diversifying investments abroad to avert any loss resulting from sudden financial turbulence in global markets through proportionate distribution of its assets.

Its balance sheet issued in mid 2011 showed there was growth in the central bank’s two main assets components this year—deposits with banks abroad and held to maturity investments. Other minor components remained almost stable.

The report showed the asset increase was in both deposits and securities.

From Dh68.4 billion at the end of 2010, held-to-maturity investments swelled to around Dh86 billion at the end of June. Year-on-year, securities were up by around 10 per cent at the end of June and deposits by a whopping 65.4 per cent.