9 Segment information

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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 2023 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 186,635   2,016     1,389   30,722    –     220,762
Interest expense and profit distributable to depositors (38,673)   (20,132)      

 –  

  (24,159)    

 –  

  (82,964)
Net fee and commission income 13,199    –        –     4,750    –     17,949
Net income from investment  –     5,197      –      –      –     5,197
Insurance service result before reinsurance contracts issued  –    –       (21,167)    –      –     (21,167)
Net(expenses)/income from reinsurance contracts held  –    –       (15,133)    –      –     (15,133))
Insurance finance expense for insurance contracts issued  –    –       (7,142)    –      –     (7,142)
Reinsurance finance income for reinsurance contracts held  –    –       3,090    –      –     3,090
Net insurance income –    –       (40,352)    –      –     (40,352)
Share of results of an associate  –     (399)      –      –      –     (399)
Other operating income, net 55,621   246     625   1,262    –     57,754
Total segment revenue 216,782   (13,072)     (38,338)   12,575    –     177,947
Depreciation of property, fixtures and equipment (6,199)   (184)     –   (185)    –     (6,568)
Other expenses and charges (49,612)   (5,421)     –   (9,905)   (69,400)   (134,338)
Total expenses and other charges (55,811)   (5,605)     –   (10,090)   (69,400)   (140,906)
Profit/(loss) for the year before impairment 160,971   (18,677)     (38,338)   2,485   (69,400)   37,041
Net impairment charges on loans and advances (23,668)    –        –      –      –     (23,668)
Net impairment reversal on Islamic financing and investing assets –    –        –     1,436    –     1,436
Net profit/(loss) for the year 137,303   (18,677)     (38,338)   3,921   (69,400)   14,809
Segmental assets 1,875,670   297,424     217,215   375,213    –     2,765,522
Segmental liabilities 1,841,005   (115,790)     193,227   185,154    –     2,103,596
Additions to non-current assets during the year –   969     806   13   28,361   30,149

 

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 157,201 8,444 1,801 25,871  – 193,317
Interest expense and profit distributable to depositors (24,432) (18,138)  

–

 (12,499)  

–

 (55,069)
Net fee and commission income 12,926  –  – 5,385  – 18,311
Net income from investment  – 12,363  –  –  – 12,363
Insurance service result before reinsurance contracts issued  –  – (57,577)  –  – (57,577)
Net(expenses)/income from reinsurance contracts held  –  – 32,122  –  – 32,122
Insurance finance expense for insurance contracts issued  –  – (1,138)  –  – (1,138)
Reinsurance finance income for reinsurance contracts held  –  – 516  –  – 516
Net insurance income –  – (25,987)  –  – (25,987)
Share of results of an associate  – (4,268)  –  –  – (4,268)
Other operating income 23,229 920 – 295  – 24,444
Total segment revenue 168,924 (679) (24,186) 19,052  – 163,111
Depreciation of property, fixtures and equipment – (194) – (181) (7,414) (7,789)
Other expenses and charges (45,107) (2,578) – (15,337) (65,338) (128,360)
Total expenses and other charges (45,107) (2,772) – (15,518) (72,752) (136,149)
Profit / (loss) for the year before impairment 123,817 (3,451) (24,186) 3,534 (72,752) 26,962
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 79,808 (3,451) (24,186) 9,255 (72,752) (11,326)
Segmental assets 2,014,051 769,275 288,608 369,851  – 3,441,785
Segmental liabilities 1,999,104 488,060 222,567 62,034  – 2,771,765
Additions to non-current assets during the year – 1,516 1,113 17 12,917 15,563


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