Al Masraf net profits up by 41 per cent

UAE, January 31, 2015 – Arab Bank for Investment & Foreign Trade has achieved a remarkable increase in its net profit for 2014—reflecting an increase of more than 41 per cent and a 38 per cent growth in its net lending portfolio. The bank, which is owned by the UAE Government, Libyan Foreign Bank and the Banque Exterieure d’Algerie, announced its financial results today (Date). The bank’s net loans and advances have gone up from AED 5.3 billion to AED 7.3 billion. Equally, the customer deposits have also gone up from AED 6.23 billion to AED 8.73 billion. The overall assets growth is more than 13 per cent, showing an increase, from AED 12.66 billion to AED 14.33 billion.

The high increase in net lending has resulted in a corresponding increase in the interest income by more than 31 per cent as compared to the previous year. Its interest income has gone up from AED 269 million to AED 353 million. The bank is a predominant player in the trade finance sector and its fee & commission income is high at around 39 per cent. The bank’s overall net profit has increased from AED 260 million to AED 366 million, achieving a significant increase of 41 per cent. The cost to income ratio is well maintained at around 33 per cent.

Announcing the financial results, Mohamed M Ben Yousef, the Chairman of the bank and also the General Manager of the Libyan Foreign Bank, said: "Al Masraf’s high results are due to the new vision and strategy adopted by the bank. With a major transformation journey, the bank is repositioning itself in the market to achieve greater market recognition. New investments are now being made to strengthen the technological system and operations platform. Our staff quality is our core strength and continuous investments are being made to further strengthen the talent in the Bank.”

Meanwhile, Faisal Hassan Galadari, Chief Executive of the bank, thanked the board of directors for their continuous support and guidance. “Al Masraf is a dominant player in the Corporate Business and Trade Finance segments. An achievement of 39 per cent growth in lending and 41 per cent increase in net profit, in the very first year of the transformation journey, is only an indication of greater things to come. Our success is mainly due to the customer-centric business approach and the innovative relationship based banking” he added. Galadari took over as the new Chief Executive of the Bank in September 2013.

When asked about the plans for 2015, Galadari shared: “We are adding an Islamic window to our clientele and our customer delivery channels are further being strengthened. Plans are on to open branches both in Sheikh Zayed Road, Ras Al Khaimah and Fujairah.  Innovative Wealth management plans will also be introduced to cater to the demands of the high-net worth clients. To ensure that our clients continue to get the best of our services, our investments in technology is also being greatly focused.”

The bank currently has 10 branches in the country with a balance sheet size of AED 14.33 billion. This is the only bank, in which the Ministry of Finance of UAE has a direct shareholding. The bank’s business focus is mainly in Corporate Banking and Trade Finance