UAE banking sector attracts $3.8 billion in new savings deposits in Q1 2024:

Savings deposits in the UAE’s banking sector, excluding interbank deposits, attracted about AED13.8 billion ($3.8 billion) during the first quarter of this year, according to the latest statistics from the Central Bank of the UAE (CBUAE).

Statistics showed that savings deposits in the banking sector reached AED286.67 billion at the end of March 2024, an increase of 8.9 percent or the equivalent of AED23.5 billion on an annual basis compared to about AED263.14 billion in March 2020.

Savings deposits at the end of March 2024 increased on a monthly basis by 3 percent or the equivalent of AED8.3 billion, compared to about AED278.37 billion in February. They also increased during the first quarter of this year by 5.1 percent compared to about AED272.8 billion at the end of 2023.

Demand deposits climb

Statistics indicated that demand deposits rose to AED1.056 trillion at the end of last March, with an annual growth of 15.02 percent, compared to AED918.9 billion in March 2023, an increase equivalent to AED138 billion.

Demand deposits increased on a monthly basis by 0.09 percent, or the equivalent of AED1 billion, compared to about AED1.05 trillion in the previous February. They also increased during the first quarter of this year by about AED37.5 billion or 3.7 percent compared to AED1.019 trillion at the end of last year.

The demand deposits were distributed as follows: AED757.78 billion in local currency, accounting for 71.7 percent, and about AED299.2 billion in foreign currencies, accounting for 28.3 percent.

The demand deposits have continued to grow over the past years, rising from AED577.6 billion at the end of 2018 to AED599.6 billion at the end of 2019, AED696.8 billion at the end of 2020, AED848 billion in 2021, and AED907.3 billion in 2022.

According to the UAE central bank’s bulletin, time deposits reached AED840.1 billion at the end of last March, with an annual increase of about 27.4 percent compared to about AED659.6 billion in March 2023, an increase equivalent to AED180.5 billion.

The local currency accounted for the largest share of time deposits at about 57.5 percent or AED483 billion, while the share of foreign currencies was about 42.5 percent or AED357.1 billion.

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