Assets of the 37 foreign banks rose 2.22 per cent (Dh9.1 billion) to Dh419.4 billion by end of May from Dh410.3 billion in May 2021.
In the first five months of the year, foreign banks’ assets grew by Dh3.9 billion or 0.94 per cent.
In its report, the Central Bank said that gross credit grew by 2.6 per cent rising from Dh1,817.4 billion at the end of April 2022 to Dh1,865.5 billion at the end of May 2022. Gross credit rose due to a 3 per cent increase in domestic credit, overriding the 0.1 per cent reduction in foreign credit.
Domestic credit mounted mainly due to 1.4 per cent, 1.3 per cent, 3.5 per cent and 16.9 per cent surges in credit to government sector, public sector (government-related entities), private sector and non-banking financial institutions, respectively.
Total bank deposits increased by 1.6 per cent, climbing from Dh2,008.4 billion at the end of April 2022 to Dh2,040.5 billion at the end of May 2022. The growth in total bank deposits was due to the ascent in resident deposits by 2 per cent, overshadowing the reduction in non-resident deposits by 1.2 per cent.
Resident deposits increased owing to 10.6 per cent, 6.1 per cent and 0.02 per cent escalations in government sector deposits, public sector (government-related entities) deposits and private sector deposits, respectively. On the other hand, non-banking financial institutions’ deposits diminished by 18 per cent.