Abu Dhabi – Mubasher: Bank of Sharjah reported net consolidated profits of AED 176 million in 2020, before non-cash adjustments relating to the bank’s Lebanese subsidiary, Emirates Lebanon Bank SAL (EL Bank).
The bank saw a non-cash negative adjustment to the profits of AED 642 million due to continuing hyperinflationary in Lebanon, which has made the group apply hyperinflation accounting under international accounting best practices to the subsidiary, according to a press release on Sunday.
The non-cash negative adjustment has led to an overall accounting loss for the year.
As for its operations in the UAE, the bank recorded net profits of AED 309 million in 2020.
Meanwhile, the bank has incurred accumulated losses of AED 182.157 million as of 2020, representing 8.67% of its capital, due to its operations through its subsidiary EL Bank in Lebanon which has been witnessing economic and political turmoil.
The Chairman of the bank, Sheikh Mohammed bin Saud Al Qasimi, said: "We delivered a robust performance in the UAE and our Lebanese subsidiary maintained its operational performance in challenging circumstances."
