UAE national banks’ investments hit AED10.4 bn in January, mostly in shares

ABU DHABI, The investment portfolio of UAE national banks amounted to AED10.4 bn in January 2020, according to figures revealed by the Central Bank of the UAE which show most of the investments focused on bonds and securities.

The banks’ investments in bonds increased AED4.9 billion in January 2020, bringing to AED215.3 bn the total balance of investments, as compared to AED210.4 bn by the end of last year.

Investments in held-to-maturity securities grew from AED95.8 bn December to AED96.2 by the end of January 2020, with other investments up from AED43.1 to AED48.3 bn during the same reference period. In the meantime, investing in shares slightly declined to AED10.6 bn.

The growth trajectory is driven by the banks’ plans to compensate for the fall in the net interest rate margin, which represents the banks’ main source of income.

Emirati banks got around 89.8 pct of total investments injected by UAE-based lenders until January 2020, which totaled AED412.2 bn.

Source: Emirates News Agency