UAE banks’ assets recover in June

The combined assets of UAE banks rebounded by around 0.4 per cent in June after losing nearly Dhs17 billion in the previous month while deposits also recovered, official data showed on Sunday. Domestic credit also recovered but growth remains slow as banks appear to be maintaining a conservative lending policy they have adopted since the onset of the 2008 global fiscal distress and ensuing regional debt default problems. The figures by the Central Bank showed the collective assets of the UAE’s 23 national banks and 28 foreign units increased to about Dhs1,732.7 billion at the end of June from Dhs1,725 billion at the end of May after diving from nearly Dhs1,741 billion at the end of April. The increase meant the UAE retained its position as having the largest banking sector in the Arab world in terms of assets and deposits. The report showed deposits grew by 1.6 per cent to Dhs1,107 billion at the end of June while loans and advances rose by 1.5 per cent to Dhs1,090.4 billion. Growth in lending has remained slow over the past three years, not exceeding five per cent in most months compared with more than 35 per cent during the boom years of 2007 and most of 2008. From:Gulftoday