10 Segment information
Segment Information
For management purposes, the Group is organized into three major business segments:
(i) Commercial and retail financing, which principally provides loans and other credit facilities for institutional and individual customers.
(ii) Investment, which involves the management of the Group’s investment portfolio and its treasury activities.
(iii) Insurance, which involves one of the Group’s subsidiaries providing non-life insurance services.
These segments are the basis on which the Group reports its primary segment information. Transactions between segments are conducted at rates determined by management taking into consideration the cost of funds.
Information regarding the Group’s reportable segments is presented below:
| 31 December 2022 | Commercial and retail financing | Investment | Insurance | Others | Unallocated | Total |
| AED’000 | AED’000 | AED’000 | AED’000 | AED’000 | AED’000 | |
| Interest income and income from Islamic financing and investing assets | 160,992 | 8,444 | 1,801 | 22,080 | – | 193,317 |
| Interest expense and profit distributable to depositors | ||||||
| (24,949) | (18,138) | – | (11,982) | – | (55,069) | |
| Net fee and commission income | 12,040 | – | – | 6,271 | – | 18,311 |
| Net income from investment | – | 12,363 | – | – | – | 12,363 |
| Net insurance premium earned | – | – | 134,666 | – | – | 134,666 |
| Net commission paid | – | – | (89,712) | – | – | (89,712) |
| Net insurance claims incurred | – | – | (5,634) | – | – | (5,634) |
| Other underwriting income |
– |
– |
(6,173) |
– |
– |
(6,173) |
| Net insurance income |
– |
– |
33,147 |
– |
– |
33,147 |
| Share of results of an associate | – | (4,268) | – | – | – | (4,268) |
| Other operating income | 25,327 | 920 | – | 11 | – | 26,258 |
| Total segment revenue |
173,410 |
(679) |
34,948 |
16,380 |
– |
224,059 |
| Depreciation of property, fixtures and equipment | (7,414) | (194) | (1,365) | (181) | – | (9,154) |
| Other expenses and charges |
(39,934) |
(2,578) |
(37,958) |
(10,024) |
(65,338) |
(155,832) |
|
Total expenses and other charges |
(47,348) |
(2,772) |
(39,323) |
(10,205) |
(65,338) |
(164,986) |
| Profit / (loss) for the year before impairment |
126,062 |
(3,451) |
(4,375) |
6,175 |
(65,338) |
59,073 |
| Net impairment charges on loans and advances | (44,009) | – | – | – | – | (44,009) |
| Net impairment reversal on Islamic financing and investing assets | 5,721 | – | – | – | – | 5,721 |
| Net profit/(loss) for the year |
87,774 |
(3,451) |
(4,375) |
6,175 |
(65,338) |
20,785 |
| Segmental assets |
2,036,687 |
769,275 |
459,832 |
347,215 |
– |
3,613,009 |
| Segmental liabilities |
2,027,239 |
488,060 |
308,624 |
33,899 |
– |
2,857,822 |
| Additions to non-current assets during the year |
12,917 |
1,516 |
1,113 |
17 |
– |
15,563 |
| 31 December 2021 | Commercial and retail financing | Investment | Insurance | Others | Unallocated | Total |
| AED’000 | AED’000 | AED’000 | AED’000 | AED’000 | AED’000 | |
| Interest income and income from Islamic financing and investing assets | ||||||
| 160,726 | 4,066 | 2,893 | 13,260 | – | 180,945 | |
| Interest expense and profit distributable to depositors | ||||||
| (30,014) | (8,626) | – | (5,109) | – | (43,749) | |
| Net fee and commission income | 12,423 | – | – | 3,440 | – | 15,863 |
| Net income from investment | – | 25,008 | – | – | – | 25,008 |
| Net insurance premium earned | – | – | 129,840 | – | – | 129,840 |
| Net commission paid | – | – | (9,705) | – | – | (9,705) |
| Net insurance claims incurred | – | – | (66,636) | – | – | (66,636) |
| Other underwriting income |
– |
– |
(11,608) |
– |
– |
(11,608) |
| Net insurance income |
– |
– |
41,891 |
– |
– |
41,891 |
| Share of results of an associate | – | (2,906) | – | – | – | (2,906) |
| Other operating income | 26,470 | 3 | 19 | 42 | – | 26,534 |
| Total segment revenue |
169,605 |
17,545 |
44,803 |
11,633 |
– |
243,586 |
| Depreciation of property, fixtures and equipment | (11,356) | (200) | (1,653) | (241) | – | (13,450) |
| Other expenses and charges |
(26,966) |
(2,385) |
(40,362) |
(9,091) |
(75,482) |
(154,286) |
| Total expenses and other charges | (38,322) | (2,585) | (42,015) | (9,332) | (75,482) | (167,736) |
| Profit / (loss) for the year before impairment |
131,283 |
14,960 |
2,788 |
2,301 |
(75,482) |
75,850 |
| Net impairment charges on loans and advances | (13,450) | – | – | – | – | (52,892) |
| Net impairment charges on Islamic financing and investing assets | ||||||
| (154,286) | – | – | – | – | (200) | |
| Net profit / (loss) for the year |
(167,736) |
14,960 |
2,788 |
2,301 |
(75,482) |
22,758 |
| Segmental assets |
1,924,585 |
846,543 |
385,659 |
345,371 |
– |
3,502,158 |
| Segmental liabilities |
2,070,692 |
144,012 |
231,483 |
254,305 |
– |
2,700,492 |
| Additions to non-current assets during the year |
15,881 |
652 |
1,565 |
465 |
– |
18,563 |
