Fair Value Management
Introduction
From a global perspective, 2016 was a year of contradictions, characterized by the reduction of systemic risks such as a European banking crisis but the rise of political risks in the western world. The start of the year 2016 was overshadowed
by fears of a global recession leading to a major correction n risky investments until mid-February 2016. For the remainder of the year, risky assets recovered with returns diverging strongly across regions and currencies. The UK Brexit vote and the US Presidential election led to shortterm
volatility in financial markets but not to a substantial correction. The oil price drop adversely impacted GCC public finances, hampered job creation, lowered credit asset quality & liquidity in the GCC banking system and slowed economic growth.From a global perspective, 2016 was a year of contradictions, characterized by the reduction of systemic risks such as a European banking crisis but the rise of political risks in the western world. The start of the year 2016 was overshadowed
by fears of a global recession leading to a major correction n risky investments until mid-February 2016. For the remainder of the year, risky assets recovered with returns diverging strongly across regions and currencies. The UK Brexit vote and the US Presidential election led to shortterm
volatility in financial markets but not to a substantial correction. The oil price drop adversely impacted GCC public finances, hampered job creation, lowered credit asset quality & liquidity in the GCC banking system and slowed economic growth.From a global perspective, 2016 was a year of contradictions, characterized by the reduction of systemic risks such as a European banking crisis but the rise of political risks in the western world. The start of the year 2016 was overshadowed
From a global perspective, 2016 was a year of contradictions, characterized by the reduction of systemic risks such as a European banking crisis but the rise of political risks in the western world. The start of the year 2016 was overshadowed by fears of a global recession leading to a major correction risky investments until mid-February 2016. For the remainder of the year, risky assets recovered with returns diverging strongly across regions and currencies. The UK Brexit vote and the US Presidential election led to shortterm
TOTAL OPERATING INCOME (AED Milions)
THE PERFORMANCE in 2017
From a global perspective, 2016 was a year of contradictions, characterized by the reduction of systemic risks such as a European banking crisis but the rise of political risks in the western world. The start of the year 2016 was overshadowed
by fears of a global recession leading to a major correction risky investments until mid-February 2016. For the remainder of the year, risky assets recovered with returns diverging strongly across regions and currencies. The UK Brexit vote and the US Presidential election led to shortterm
EQUITY AND LIABILITIES
EQUITY
| Share capital | 20 | 310,050 | 310,050 |
| Treasury shares | 24 | (12,587) | (9,750 |
| Employees’ share-based payment scheme | 21 | (1,750) | (1,750) |
| Statutory reserve | 22 | 142,752 | 138,722 |
| Cumulative changes in fair value of investments carried at fair value through other comprehensive income | 17,493 | (57,858) | |
| Retained earnings | 133,227 | 196,234 | |
| Tier 1 Sukuk | 10 | 288,700 | 297,850 |
| Proposed directors’ remuneration | 2,076 | 5,371 | |
| 879,961 | 878,869 | ||
| Non-controlling interests | 3 | 73,791 | 75,316 |
| Total equity | 953,752 | 954,185 |
LIABILITIES
| Customers’ deposits and margin accounts | 20 | 310,050 | 310,050 |
| Due to banks and other financial institutions | 24 | (12,587) | (9,750 |
| Short term borrowings | 21 | (1,750) | (1,750) |
| Medium term loan | 22 | 142,752 | 138,722 |
| Interest payable and other liabilities | 17,493 | (57,858) | |
| Provision for employees’ end of service benefits | 133,227 | 196,234 | |
| 3,428,689 | 4,057,764 | ||
| Liabilities directly associated with assets classified as held for sale | 34 | 29,902 | 29,902 |
| Total liabilities | 3,458,591 | 4,087,666 | |
| Total equity and liabilities | 4,412,343 | 5,041,851 | |
| Commitments and contingent liabilities | 25 | 1,969,881 | 1,804,985 |
