Al Masraf Achieves Remarkable Growth with 43% Increase in Net Profit for 2023
The Arab Bank for Investment & Foreign Trade (Al Masraf) has proudly announced a significant financial achievement for the year ended December 31, 2023. With a strategic approach and a focus on innovation and customer service, Al Masraf has seen remarkable growth across various financial metrics.
Impressive Financial Highlights
The bank reported a robust net profit of AED 189 million for 2023, marking a substantial 43% increase from the previous year’s figure of AED 132 million. This exceptional growth is attributed to the bank’s improved operating performance, benefiting from a favorable asset and liability mix alongside higher interest rates.
Net Interest Income also saw a notable rise, reaching AED 702 million, up 23% from the previous year, while Non-Interest Income grew by 11% to AED 203 million. Investment activities surged with an impressive 44% increase, totaling AED 3.83 billion, primarily driven by an uptick in fixed income securities.
Al Masraf noted a significant enhancement in its investment portfolio and customer deposits. Total customer deposits reached AED 14,750 million, compared to AED 14,130 million in 2022. The bank’s investment portfolio expanded substantially by 44%, achieving AED 3,836 million up from AED 2,658 million in the preceding year.
Despite the strategic move to de-risk and selectively book new business leading to a slight reduction in net loans and advances, down to AED 12,901 million in 2023 from AED 13,422 million in 2022, the bank’s balance sheet remains robust. Capital adequacy ratios and liquidity metrics stand well above the regulatory requirements, ensuring long-term sustainability and growth potential.
Leadership Insights
Chairman of the Board of Directors, Farhat Omar Ben Gdara, expressed his enthusiasm over the year’s performance, attributing the success to the bank’s strategic vision and commitment to excellence in service delivery. Anticipating the future, he highlighted the bank’s optimism and readiness to capitalize on the national economy’s growth trajectory and further advance its digital and transformation strategies.
Acting Chief Executive Officer, Charles Doghlass, also reflected on the positive outcomes, emphasizing the strength and resilience of their core business. He credited these achievements to the bank’s strategic business decisions, enhanced asset quality, and leveraging of technological advances.
Doghlass further remarked on the future, stating the bank’s continuous efforts to refine and adapt its business model to meet the needs of its customers and achieve sustainable growth. Both leaders acknowledged the vital role of dedicated employees and loyal customers in the bank’s success.
Looking Forward
Al Masraf looks to the future with confidence and optimism. The bank is set on maintaining its growth trajectory and enhancing its competitive edge through strategic initiatives, digital transformation, and unwavering focus on customer satisfaction. The success achieved in 2023 serves as a steadfast foundation for the bank as it navigates the opportunities and challenges of the future.
With a strong balance sheet, robust capital adequacy, and a clear vision, Al Masraf continues to strengthen its position as a leading financial institution in the UAE, dedicated to delivering exceptional value to its customers, shareholders, and the wider community.
