27 Related party balances and transactions

Related party balances and transactions

In the ordinary course of business, the Group enters into transactions with associates, major shareholders, directors, senior management and their related concerns at commercial interest and commission rates.


The year-end balances in respect of related parties included in the statement of financial position are as follows:

  2018   2017
AED’000   AED’000
Loans and advances  
To key management staff

973

775

To members of Board of Directors

38,103

9,277

To others
Customers’ deposits
From others

11,527

11,084

 


Significant transactions with related parties during the year were as follows:

 

For the year ended 31 December

  2018   2017
  AED’000   AED’000
Interest income  
From key management

32

16

From Board of Directors

1,605

312

 
Interest expense
To others

161

80

Key management remuneration
Short term benefits (salaries, benefits and bonuses)

19,418

21,941

 

Balances with related parties include loans granted to Directors and their related parties in the normal course of business amounting to AED 38,103 thousand as at 31 December 2018 (2017: AED 9,277 thousand).  These loans carry fixed interest rates of 6.0% p.a to 6.5% p.a (2017: fixed interest rates of 6.5% p.a).