According to El-Ayyan newspaper, the operating income of 1.412 million dirhams decreased by 6.5% compared to the same period in the previous year, and this decrease was mainly due to the low rate of interest rates.
Operating expenses decreased by 9.9% to reach 386 million dirhams. Operating profit was AED 1.02 million, down 5.2%.
The capital adequacy ratio maintained its strong level, with a capital adequacy ratio of 14.03%, while the adequacy ratio of the first tier of the joint capital was 12.87%. < / p>
Total loans and advances increased by 4.2% compared to the end of December 31, 2019, to reach 66.8 billion dirhams.
balance sheet
Total assets amounted to 93.7 billion dirhams, as of June 30, 2020, up by 19.4% compared to 78.4 billion dirhams as of June 30, 2019. Net loans and advances increased by 63.4 billion AED 15.6% compared to 54.8 billion dirhams, as of June 30, 2019.
Customer deposits increased by 18.2% to reach 65.3 billion dirhams as of 30 June 2020 compared to 55.3 billion dirhams as of 30 June 2019. Current and low savings accounts are The cost is 42.1% of the total customer deposits, while the financing to deposit ratio is 97.1%.
In line with IAS 9 Financial Reporting, the bank has raised expected credit losses, mainly related to the potential impacts of Corona virus 19 and other specific credit events. As a result, provisions for a decrease in net additional value of 495 million dirhams were deducted during the first six months of 2020.
The coverage ratio of classified loans decreased to 60.88% (105.89% including stage III loan guarantees) compared to 83.14% as at the end of 2019, and a significant development has been achieved During the second quarter in achieving guarantees against classified loans, it is expected that the coverage rate for classified loans will increase significantly during the second half of the current year, as large loans fully guaranteed will be recovered.
Dr. Bernards Van Lender, CEO of the bank, said: “The bank’s results have decreased for the first six months of 2020 mainly affected by unprecedented market conditions ....
