AEIB profit soars 16 times to Dh9.78 million

Arab Emirates Investment Bank (AEIB) profits jumped 16 times to Dh9.78 million in 2009 compared with Dh598,373 the bank made in 2008.

The bank's assets under management rose 314 per cent to Dh199.775m whereas its deposit base grew by 175 per cent in 2009.

The bank attributed its increase in profits to growth in assets under management and deposit base and also to its decision earlier in the year to "invest in GCC government bond issues in order to take advantage of the dislocation that occurred in debt markets". The bank said it would continue to focus on high net worth and institutional clients in 2010.

According to its financial results posted on the DFM website, the deposits rose to Dh495.24m from Dh179.24m in 2008 whereas AuM increased from Dh48.23m to Dh199.77m.

The bank said it was able to service high net worth individuals well, and in spite of 2009 being a tough year due to global economic crisis, its HNW clients have valued the bank's personalised services.

Its investment banking business contributed to the profits in a meaningful way for the "first time".

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