Invest Bank’s Assets Reach $2.94 Billion by 2024

After implementing the capital restructuring plan in 2023 and navigating challenges by remaining prudent, diligent and proactive last year, the Sharjah-based Invest Bank said that it has entered 2025 stronger than ever.

Sharjah’s Deputy Ruler and Bank Chairman H H Sheikh Sultan bin Ahmed Al Qasimi said that there were new horizons, and they will progress towards them with even greater resolve. In 2025 and beyond, the bank intends to keep challenging itself with ambitious milestones and targets.

“In addition, we will focus on expanding our business both organically and otherwise, as well as driving our market share.  Additional support for this will come as our operating model becomes more technology-driven and customer-centric,” he said in the Invest Bank’s Integrated report for 2024, which was disclosed to Abu Dhabi Securities Exchange (ADX) on Saturday.

Meanwhile, bank’s CEO Edris Mohammad Rafi Mohammad Saeed Al Rafi said that amid steady GDP growth in the UAE, the bank has delivered a commendable financial performance last year as the interest income totalled $133.13 million, up 8.1% compared with $123.06 million in 2023.

The operating income also rose, to $68.31 million, up 5.6% y-o-y, which was primarily due to improved interest and fee income, as well as higher income from managed repossessed properties. Elsewhere, the bank reduced its impairment charge to $31.04 million, down 89% from over $272 million in 2023.

The charge for 2024 included the impact of the CBUAE’s new credit risk management standards (CRMS). Excluding this, Invest Bank’s profit before tax would have been around $17.42 million, he said.

The bank’s total assets reached $2.94 billion in 2024, with net loans and advances of $1.23 billion and deposits of $2.37 billion. At the year-end, shareholder equity was $410 million. The additional provisions taken on loans in 2024 have almost fully de-risked the balance sheet from legacy nonperforming loans.

Meanwhile, Invest Bank maintained its strong liquidity, with an eligible liquidity asset ratio (ELAR) of 15.6%, above the regulatory requirement. This is testament to its ability to meet obligations without reducing liquidity or hindering business.

The capital adequacy ratio was 29.9%, which is strong and creates a solid base for building and growing the business further, he said.

He also said that with a stronger financial foundation, they continued building towards transforming the bank into one of the UAE’s leading, customer-centric commercial banks.

About Invest Bank                

Invest Bank was established on 13 February 1975 as a public stock company in Sharjah, and on 10 April 2019, the Government of Sharjah (GOS) became its shareholder by investing $300 million in exchange for a majority stake of 50.07%.

Again on 12 October 2023, the GOS increased this further through a rights issue, taking its holding to 88.11% of the Bank’s capital. Its contribution was through a standby guarantee agreement against claims of losses for the Bank’s bad loans.

The investment was made on a commercial basis, with the objective of creating long-term value and an operationally strong financial institution.

However, in a move to diversify ownership, the GOS transferred 20.48% of its shares in the Bank to the Sharjah Social Security Fund (SSSF) on 30 December 2024. This brought net ownership to 70.06% for the GOS, 18.04% for the SSSF and 11.90% for other owners.