CHAIRMAN’S STATEMENT

Group financial performance in 2023

I summarize below the key financial outcomes of our actions for the year ended 31 December 2023:

• Net Profit of AED 20.79 million, compared to AED 22.76 million registered in the previous financial year ended 31 December 2023.
• Net Interest Income and Income from Islamic Financing & Investing Assets were higher at AED 138.25 million in 2023 compared to AED 137.20 million in the previous year.
• Net Fee and Commission income earned in 2022 was higher at AED 18.31 million compared to AED 15.86 million in the previous year.
• Our insurance subsidiary- Insurance House PJSC registered a lower Net Insurance Income of AED 33.15 million in 2023 compared to AED 41.89 million in the previous year.
• Net Investment Income from group-wide investing activities was lower at AED 12.36 million compared to AED 25 million in the previous year, primarily due to certain one-off gains in the investment book in the prior year.
• Net Operating Income for 2023 was marginally lower at AED 190.04 million compared to AED 193.40 million in the previous year.
• Net Loans & Advances including Islamic Financing & Investing Assets as of 31 December 2023 stood at AED 2.02 billion compared to AED 2.11 billion as at the end of the previous year.
• On the other hand, the focused execution of our strategy to shore-up liquidity buffers, resulted in a 20% growth in Customers’ Deposits & Margin Accounts to AED 2.06 billion as of 31 December 2023, compared to AED 1.72 billion as at the end of the previous year.
• Our loan loss provisioning policy continues to be prudent. In line with the expected credit loss model (ECL) for loan impairment provisioning under IFRS 9, net impairment charge for the year 2023 was AED 38.29 million compared to AED 53.09 million in the previous year.
• Total Operating Expenses for 2022 at the Group level were lower at AED 164.99 million compared to AED 167.74 million in the previous year.
• Net cash and cash equivalents as at 31 December 2023 stood at AED 730.43 million (2021: AED 569.17 million), representing a healthy 20.2% of Total Assets.
• Shareholders’ equity as at 31 December 2023 stood at AED 755.19 million. Total Assets ratio as of 31 December 2022 stood at a robust 26.2%, providing a solid footing for sustained future growth in assets.