- On 22/02/2017
The Arab Bank for Investment and Foreign Trade (Al Masraf) recorded a net profit of AED 433 million in 2016—reflecting a growth of 7 per cent as compared to the AED 405 million profit it posted in 2015. The company’s operating profit also rose by 7 per cent to AED 694 million.
The remarkable growth of the profits is a result of Al Masraf’s move to expand its loan portfolio by 12 per cent to reach AED 10.54billion in 2016. The bank also achieved positive results in consolidating its client base and boosting its ability to attract and utilize deposits in the national economy.
In 2016, clients’ deposits increased by 12 per cent to reach AED 10.72billion, while the assets jumped to AED 17.8 billion with a growth of 18 per cent over the previous year.
The financial results demonstrate the strong performance achieved by Al Masraf in 2016 and its high-level capabilities that contributed in expanding its lending portfolio, mainly targeted towards the corporate sector.The bank has high financial solvency that meet and exceed the requirements of both the Central Bank of the UAE and Basel Committee on Banking Supervision. The Capital Adequacy Ratio (CAR) of AlMasraf is 23.9 per cent, which is a high rate that reflects its ability to expand credits efficiently and competitively in the UAE market that witness sharp competition among banks.
“We are pleased with the strong financial performance of 2016. We succeeded to achieve positive results despite the strong competition within the local banking market and the regional and global markets.” said Mohamed M Ben Yousef,Chairman, Al Masraf, Commenting on the financial results of 2016, “ We were able to face the emerging challenges and enhance our financial results, taking advantage of the strong global position of the UAE, which has a diverse economic base, modern infrastructure and business-friendly environment,” he added.
“Our commitment to innovation and excellence in customer service were the cornerstone of Almasraf’s strong performance in 2016,” Faisal Galadari CEO Almasraf said.” The bank launched a group of initiatives and products that had a significant impact on achieving growth in all our business segments, as we made use of the most of the available opportunities .We also enforced the IT infrastructure all over the year ,developed the service channels to increase the level of customer satisfaction and enhance the quality of our products . We also expanded our presence in the Northern Emirates with the opening of a new branch in the emirate of Ras Al Khaimah .The bank had the honor of winning Sheikh Khalifah award for Excellence in recognition of our commitment to implementing the best international practices and our continuous efforts to achieve excellence in all areas of work.” He added.
Galadari expected the bank to continue its strong performance during 2017.He said that raising interest rates in the market would enhance competition between banks which result in introducing more attractive products for customers. He added that the bank will launch new products this year to attract more customers and deposits, and will continue implementing the Strategic three-year Plan, work on the development of digital services through harnessing the latest banking systems and transforming its branches into digital branches as well as upgrading ATMs. “The bank will open during 2017 two new branches one in Mussafah in Abu Dhabi and the other in Dubai’s Sheikh Zayed Road. “he said. He also confirmed that the bank will continue to develop its human resources through training and investing in national human resources, expecting an Emiritization rate of more than 35% by the end of the year.