Investment securities balance rises in UAE banks to $18.9bln

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ABU DHABI: Emirati banks are continuing to focus their investment activities on securities, which raised the total balance of their investment in the sector to AED69.3 billion ($18.9 billion) at the end of February 2018, an increase of AED6.8 billion compared with December 2017.

According to experts in the banking sector, the banks are continuing to increase their level of investment in held-to-maturity securities, to achieve guaranteed returns and maximise their revenue at the end of each year, which will increase their profits.

At the end of February, their balance of held-to-maturity securities represented around 22.1 percent of their investments, reaching AED313.5 billion, according to statistics from the Central Bank of the UAE.

Along with securities, their other investments include stocks, debt securities and real estate.

It is clear from the preliminary list of their portfolios that there is a decline in most of their investments during the first two months of the year, but not in held-to-maturity securities, which continued to rise. In December 2017, the balance of their investment in held-to-maturity securities reached AED62.5 billion, which rose to AED67.8 billion in January this year, and continued to rise to AED69.3 billion in February, according to the Central Bank.