CBUAE 2025 Financial Stability Report Highlights Banking Sector Resilience as Assets Hit AED 5.3 Trillion
The Central Bank of the UAE (CBUAE) has published its Financial Stability Report for 2025, affirming the robust health of the nation's financial system. The report underscores the banking sector's strong performance, characterized by sufficient capital and liquidity buffers, significantly improved asset quality, and sustained upward trajectories in credit, deposits, and profitability amid a thriving national economy.
Record Asset Growth and Improved Quality
The UAE banking sector demonstrated exceptional financial metrics throughout 2025. Total assets crossed the five-trillion mark, while asset quality improved to levels not seen in recent years, reflecting disciplined lending and a favorable economic environment.
The following table summarizes the key financial indicators from the 2025 report:
Financial Indicator2025 Performance / Metric
Total Banking AssetsIncreased by 17.1% to reach AED 5.3 Trillion
Bank Credit GrowthGrew by 17.8%, heavily driven by domestic retail and private corporate lending
Non-Performing Loans (NPL)Dropped to 3.3% (a sharp decline from 4.7% in 2024 and 8.2% in 2020)
Capital Adequacy Ratio (CAR)Reached 17.0%, maintaining a robust buffer well above regulatory requirements
Net ProfitSurged by 11.7% to AED 90.8 Billion, fueled by higher overall operating income
Stress Testing and Economic Resilience
To assess the system's durability, the CBUAE conducted rigorous regulatory stress tests for 2025. The results confirmed the banking sector's capacity to absorb severe macroeconomic and financial shocks while maintaining capital levels above minimum regulatory thresholds.
Under an adverse hypothetical scenario, the average Common Equity Tier 1 (CET1) capital ratio would decline from 14.1% to 11.1% at its lowest point during the test period. Despite this modeled drop, the ratio remains securely above the minimum regulatory limits, proving the sector's structural resilience.
Financial Infrastructure and Broad Sector Growth
Beyond traditional banking, the report noted the continued strong performance of other critical financial segments, including the insurance and Islamic banking sectors. The CBUAE also highlighted significant strides made within its Financial Infrastructure Transformation (FIT) program to boost the digital economy:
Aani: The expansion of the instant payment platform to facilitate seamless domestic transfers.
Jaywan: The continued rollout and integration of the national domestic payment card scheme.
Cross-Border Payments: Ongoing advancements designed to enhance transaction efficiency and cement the UAE's status as a leading global financial hub.
Executive Perspectives
"The findings of the 2025 Financial Stability Report confirm the robustness and flexibility of the UAE's financial system and its ability to continue efficiently supporting the national economy," stated H.E. Khaled Mohamed Balama, Governor of the CBUAE.
The Governor emphasized that this resilience is anchored by strong capital and liquidity levels, alongside consistent growth in deposits and profitability. He further affirmed that the CBUAE will continue to evolve its regulatory and prudential frameworks to preempt future risks and ensure the financial system actively supports sustainable economic growth.