It decreased by 24.7% compared to the year of “Corona”
302 million dirhams community contributions to 15 national banks during 2021
Abu Dhabi Islamic kept the value of community contributions unchanged at 20 million dirhams.
archival
Amjad Nasr: "The banks' realization of large profits will be reflected in their societal contributions, and this is what we expect during the coming period."
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Last year, 15 national banks out of the 18 listed banks in the country's money market made societal contributions, including donations and charitable works, worth 302.2 million dirhams, a decrease of 24.7%, compared to the contributions they made during 2020, the year of "Corona", Which recorded a value of 401.3 million dirhams, according to a monitoring conducted by «Emirates Today», from the reality of the audited financial statements of these banks.
While detailed data on the societal contributions of the remaining three banks, namely: Sharjah, Al-Istithmar, and Emirates Investment, were not available until the completion of monitoring.
According to the data, Sharjah Islamic Bank provided the highest value of societal contributions over the past year, and the one that preceded it, with a value of 74.7 million dirhams in 2021, and 74.1 million dirhams in 2020, in the form of donations from the Zakat Fund and other donations and sponsorship of universities and service organizations General.
highest growing
As for the banks with the highest annual growth rate, Ajman Bank ranked first, with an increase of 1900%, as it raised its community contributions from 20,000 dirhams during 2020 to 400,000 dirhams last year.
In second place, in terms of growth, was Bank of Fujairah, with a 1,300% increase last year compared to 2020
On the other hand, several banks reduced their societal contributions during the past year, compared to 2020, led by Dubai Islamic Bank, whose contributions decreased by 79%, followed by United Arab by 65%, while Mashreq ranked third by 51%.
And Abu Dhabi Islamic Bank maintained the same value of community contributions unchanged at 20 million dirhams.
The monitoring also showed that eight banks out of 15 reduced their societal contributions by more than double digits.
societal contributions
For his part, the banking expert, Amjad Nasr, told "Emirates Today", "Social contributions have become an essential part of banks' financial reports annually, within governance frameworks, and they are often related to the size of profits, and they are not limited to material contributions, but extend to Participation in societal, cultural and financial awareness activities,” noting that “part of the societal contributions is also represented in developing qualifying training programs for graduates, to prepare them for banking work, although this aspect requires greater activity from banks.”
Nasr added: “Banks contributed in the year (Corona) to rescheduling the debts of defaulters and provided facilities, in implementation of the directives of the Central Bank, within the framework of their societal role and helping to maintain the stability of families,” noting that “the year 2020 was exceptional in terms of the contributions of community banks. Naturally, there will be a reduction in them, if these conditions recede, but in return the banks achieve great profits, which is undoubtedly reflected on their societal contributions, and this is what we expect during the coming period, in light of the recovery of the economy and the return of the movement of commercial activity to full circulation.
• 8 banks out of 15, reduced their community contributions by more than double digits.
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