Key Financial Results
- Net Profit: 189 million (up 43% from FY 2022)
- Net Interest Income: 702 million (up 23% from FY 2022)
- Non-Interest Income: 203 million (up 11% from FY 2022)
- Investment: AED 3.83 billion (up 44% from FY 2022)
Abu Dhabi, UAE – The Arab Bank for Investment & Foreign Trade (Al Masraf), has recently reported its Financial Results for the year ended 31 December 2023.
Al Masraf posted a Net Profit of AED 189 million for the year 2023, compared to a net profit of AED 132 million in 2022 representing an increase of 43%. The growth in net profit is a result of improved operating performance on the back of a favorable asset and liability mix and higher interest rates.
The customers’ deposits increased to AED 14,750 million as compared to AED 14,130 million in 2022 and the Bank’s Investments Portfolio increased by 44% to AED 3,836 million compared to AED 2,658 million in 2022. The increase was attributable to increase in the fixed income securities. As part of the active balance sheet management, the inter-bank borrowings increased to AED 2,042 million from AED 1,792 million in the previous year, an increase of 14%, whilst the net loans and advances were slightly lower at AED 12,901 million in 2023 from AED 13,422 million in 2022 as the Bank continued to de-risk and selectively book new business. The Balance sheet remains strong with capital adequacy ratios and liquidity metrics being well ahead of the regulatory requirements.
Commenting on the results, Farhat Omar Ben Gdara, Chairman of the Board of Directors, said: “I am delighted to announce that we have recorded another year of remarkable growth in net profits, driven by a well-defined business strategy, favorable product mix and exceptional customer service. Our relentless focus remains on delivering relevant products and services to our customers and using technology and service to constantly enhance their banking experience.”
He further added: “We look ahead to 2024 with confidence and optimism. The steady return to growth across various sectors of the national economy, and the ongoing application of the Bank’s digital and transformation strategies will provide a strong platform for growth in the future. We are confident, with the support of our highly dedicated and hardworking team we will continue to serve our customers effectively and efficiently.”
Charles Doghlass, Acting Chief Executive Officer at Al Masraf commented:
“We are immensely proud of the strong set of results achieved by Al Masraf in 2023. These positive results provide clear evidence of effectiveness of our business strategy, resilience in our core business and sound improvement in asset quality. This was underpinned by a healthy balance sheet, robust capital adequacy, sound improvement in the asset quality, and success in leveraging technology.
He added: “Looking to the future, we are continuously developing and improving our business model and activities in line with our customer base and sustainable growth strategy. We are confident we can deliver on our strategy by building on the significant progress we have attained over the past years with the constant support of our loyal customers and employees.”
