Net investment by the federal government and local governments in non-financial assets rose to Dhs32.2 billion in the first half of 2020, an increase of 40 per cent as compared with same period in 2019, according to figures issued by the Ministry of Finance.

Statistics showed that net investment stood at Dhs12.1 billion in the first quarter of 2020 and surged to Dhs20.1 billion in the second quarter of the year, a 65.7 per cent increase as compared with the first quarter 2019.

The total value of fund transfers among the UAE’s banks amounted to Dhs6.307 trillion during the first eight months of 2020, according to the recent statistics released by the Central Bank of the United Arab Emirates.

The bank fund transfers during the reference period hit Dhs4.051 trillion, while individual transfers stood at Dhs2.255 trillion. The transactions are made through the UAE Fund Transfer System (UAEFTS) that enables the lenders to conduct all interbank local fund transfers.

FTS is a funds transfer mechanism in the UAE wherein transfer of money takes place from one bank to another through the UAE’s Central Bank system. In compliance with regulatory requirements, all banks in UAE have been mandated to use the UAE FTS for all AED transfers.

In the meantime, total withdrawals from the CBUAE during the reference period valued around Dhs134.77 billion, Dhs134.756 billion of which are banknotes and the remainder in coins. Deposits reached Dhs149.88 billion, Dhs149.852 of which are in banknotes and the rest in coins, according to the financial regulator’s figures.

ADNIC posts profit: The Abu Dhabi National Insurance Company (ADNIC), on Thursday reported its financial results for the nine-month period ended 30th September 2020.

Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al Nahyan, Chairman of ADNIC, said, “In a year full of uncertainty, our strategic actions have enabled us to deliver resilient results as we recorded a net profit of AED282.8 million, a 45.5 per cent increase compared to the same period last year. We also won several significant accounts which helped propel the business forward and we continued to accelerate our digital initiatives across the company. Looking at the remainder of the year, we will continue to respond to the increasing digital-first mindset of retail and SME customers through ongoing product and service innovation.”

Ahmad Idris, CEO of ADNIC, said, “I am very pleased to report that ADNIC has demonstrated solid financial performance for the third quarter of 2020 both in terms of gross written premiums as well as net profit. This performance comes as a natural reflection of our comprehensive technical underwriting framework, wide and loyal customer base and our continuous dedication towards delivering market pioneering customer service standards despite the unprecedented and challenging ongoing market conditions. We look forward to concluding this year strongly, while we continue to innovate and strengthen our capabilities to meet the rapidly changing needs of our customers and to achieve superior returns for our shareholders.”

He added, “Moving to the remainder of the year, we will continue to look for ways to remain competitive and fully operational to deliver on our promise as our customers’ reliable insurer. Being a responsible company is fundamental to ADNIC’s long-term sustainability and as we move into the last quarter of the year, we will continue to leverage on our digital facilities and give back to the local community through our long-standing CSR initiatives.”

ADNIC’s technical underwriting results remained solid with 44.0 per cent growth, compared to same quarter last year. Particularly strong gains were achieved in the total insurance premium reaching Dhs3.17 billion which is 6.2 per cent growth compared to the previous year with Dhs2.98 billion, and the technical profit which increased by 125.5 per cent - reaching 201.8 million in the third quarter of 2020 compared to 89.5 million in the previous year.

The growth in revenue is primarily driven by the Commercial Lines division which has recorded a 12.8% increase compared to the previous year as a result of a successful conversion of new business opportunities. The company delivered a resilient 5 per cent growth across our Employee Benefits division for Q3 2020 on the basis of strong renewal and new business performance.

WAM