Invest Bank loss falls 39% to AED356m in FY20

BBN Report

‘Central Bank willing to extend liquidity support’

 SHARJAH/February 01-2021: The ADX-listed Invest Bank reported loss of AED356.31 million for the financial year ending December 31, 2020 against a larger loss of AED549.36 million for the previous year, thus representing a drop in loss to the extent of 39 per cent for FY20.

During the year, while the total assets fell from AED11.70 billion to AED8.73 billion, the shareholders’ equity also witnesses contraction from AED1.29 billion to AED909.82 million.

Revenues fell from AED304.84 million to AED187.21 million during 2020, whereas the net operating profit declined from AED54.72 million to AED6.76 million.

Management said it has initiated steps to reduce costs and increase efficiencies starting from 2019 and this has resulted in a 26 per cent decrease in operating expenses, mainly as a result of a 28 per cent reduction in staff related expenses.

“The Central Bank of the UAE has made a public press announcement on December 16, 2018 and has subsequently reaffirmed to Invest Bank that it will provide support by making available liquidity facilities, which remain at bank’s disposal if and when needed,” said Lloyd Charles Maddock (seen in the picture), chief executive officer (CEO) of the bank.

Government of Sharjah is the majority shareholder in Invest Bank owning 50.07 per cent of shares.