Management Discussion &
Analysis Report
Q3 2023
14th of November 2023Invest Bank delivered robust performance over the first nine months
of 2023, with net operating income growing to AED 199 million, which
represents an 81% increase Year-on-Year.
Similar performance was also evident in other metrics. Driven by continued
strengthening in underlying fundamentals, operational and performance
numbers improved across the board, both Y-o-Y and YTD.
81% 433%
AED 199M AED 50M
Operating income Operating profit
39 ppts 37 ppts
75% 40.1%
Cost to income ratio Capital adequacy ratio
5 ppts 19 ppts
16.4% 49.2%
Liquid asset ratio Loans to deposit ratio
33% 7%
AED 11.4bn AED 8.1bn
Total assets Customer deposits
1Over the past nine months, Invest Bank continued to
make steady progress towards its strategic goals. With
dedicated teams attending to forward-looking objectives
such as diversifying the client base and revamping the
technology infrastructure, other teams continued to
work on restructuring and resolving legacy issues. The
multi-pronged strategy currently in place will ultimately
consolidate Invest Bank’s position as one of the UAE’s
leading providers of future-proof banking solutions –
both for retail and corporate customers.
To further strengthen the bank’s financial standing,
a guarantee was secured during the period ending
September 2023, with the Government of Sharjah,
coupled with AED 2.6 billion, as a capital increase.
Part of the available funding will be allocated to
modernizing the bank’s systems with break-through
technologies, including several regional firsts. Successes
in this area are evidenced by multiple awards received by
the bank over the previous nine months, including two
awards for “The Most Innovative Digital Core Banking
Service Provider”.
All KPIs point to the success of the efforts under way,
with financial results for the preceding nine months,
both YoY and YTD, driven by strengthened underlying
growth. Operating Income and Operating Profits are
both on an upward trend, while Cost to Income and
Loans to Deposit ratios continue to drop.
2Financial Statements | Summary
Income Statement Balance Sheet
(AED million) YTD YTD Var. (AED million) Sep Dec Var.
Sept Sept 2023 2022
2023 2022
Net interest income 149 61 144% Cash and deposits 1,014 615 65%
with CB
Non interest income 50 49 2%
Investments 2,340 2,136 10%
Loans & advances 3,986 5,137 -22%
Operating income 199 110 81%
Customer Deposits 8,104 7,587 7%
Operating expenses (149) (125) 19% Shareholders’ Funds 2,349 104 2159%
Operating profit before 50 (15) 433% Total Assets 11,385 8,567 33%
impairment charge
Key Ratios
Net impairment charge (405) (112) 262%
Capital adequacy ratio 40.1% 2.8%
Loss for the period (355) (127) 180%
Liquid asset ratio 16.4% 11.0%
Basic EPS (Fils) (2) (4) Loans to deposit ratio 49.2% 67.7%
3Net Interest Income: increased by 144%, with contribution
to the total operating income amounting to 75%,
which reflects the bank’s success in revenue stream
diversification and business model restructuring.
Operating profit: amounted during the period to AED
50M, i.e. an increase of 433% compared to an operating
loss of AED 15M over the corresponding period of last
year. Operating profits were recorded for the first time
in Q3 2023 since Q1 2022.
Balance sheet fundamentals: maintained robust balance
sheet fundamentals: total assets up 33% YTD to AED
11.4 billion, customer deposits up 7% to AED 8.1 billion,
with a very strong liquidity profile.
Current Account & Savings Account (CASA) balances:
up by 25% YTD, with a contribution of 25% attributed
to customer deposits, thus underlining the continuous
improvement of the bank’s deposit mix.
Net impairment charges: while the allocation of AED
405M for the period is higher than that of last year, it
reflects the continued efforts in de-risking the balance
sheet and alleviating the impact of legacy issues.
Capital Adequacy ratio (CAR): increased to 40.1%,
further relieving any potential constraints on financing
to customers for future growth.
Government of Sharjah shareholding increased from
50.07% to 88.11% pursuant to a rights issue.
4

Sentiment: positive