emirates7 - UAE-based banks attracted over 54 billion dirhams ($14.7 billion) in short-term deposits during the first five months of this year, reflecting an 8.9 percent increase from December 2023, according to official data.

The Central Bank of the UAE reported that "three-month deposits" amounted to 659.01 billion dirhams by the end of May, as noted by the Emirati news agency WAM. These deposits, which are fixed for a three-month period and usually offer a fixed interest rate, make up a significant portion of the banking sector’s short-term funds.

National banks held the majority of these deposits, totaling 90.9 percent, or 598.9 billion dirhams, while foreign banks accounted for 9.1 percent, or 60.02 billion dirhams, as reported by WAM.

This increase in short-term deposits comes as the UAE’s leading banks demonstrate strong capital positions, driven by high profitability and improved asset quality in the second quarter. Profitability rose to 21.5 billion dirhams, fueled by higher net interest income and a significant reduction in impairment charges, according to global professional services firm Alvarez & Marsal.