CBUAE: Egypt Among Top 5 Countries Concentrating Assets of Subsidiary Companies and UAE Bank Branches

A recent report titled “Financial Stability” 2022, issued by the UAE Central Bank (CBUAE), revealed that the global presence of UAE banks encompasses more than 20 countries following numerous acquisition deals in recent years. The report highlighted that the assets of subsidiary companies and branches of UAE banks abroad reached AED 606 bn by the end of 2022.

The report indicated that United States, Turkey, United Kingdom, Egypt, and Saudi Arabia were the top 5 countries in terms of total assets of subsidiary companies and UAE bank branches, as reported by the Gulf News.

Furthermore, the report disclosed that the investment portfolio in the insurance sector in the UAE amounted to AED 62.8 bn in 2022. It pointed out that equity investments accounted for a significant portion of the total investment portfolio at 35%, followed by bonds at 29.9%, cash and deposits at 27.7%, Mortgage investments at 5.9%, and the remaining amount classified as other assets.

The report revealed that total assets of finance companies continued to decline, while profitability and asset quality remained under pressure in 2022.

However, the sector as a whole maintained a substantial capital reserve and sufficient liquidity, despite noticeable differences among finance companies.

According to the report, the number of operating finance companies in the UAE decreased from 19 to 16, including 3 owned by banks. Total assets of finance companies decreased by 8.6% during 2022, amounting to AED 25.3 bn. Loans remained the main component of finance companies' assets, representing 55.7% of the total assets in 2022.