Abu Dhabi – Mubasher: Invest Bank incurred AED 2.2 billion accumulated losses in 2019, representing 70% of its capital, according to the bank's disclosure to the Abu Dhabi Securities Exchange (ADX) on Monday.
The accumulated losses were driven by the provisions booked by the bank due to weak governance and credit underwriting as well as a subdued economic environment that has led to a further deterioration in its loan portfolio.
Last year, the bank booked further credit-related net provisions of AED 634 million that increased the accumulated losses.
To decrease the accumulated losses to 41.3% of the issued capital, the bank will use its special and legal reserves of AED 450.68 million each.
Noteworthy to highlight that in 2019, the bank's net losses plunged by 61% year-on-year (YoY) to AED 579 million from AED 1.47 billion in 2018.
