27 Related party balances and transactions

Related party balances and transactions

In the ordinary course of business, the Group enters into transactions with associates, major shareholders, directors, senior management and their related concerns at commercial interest and commission rates.

The year-end balances in respect of related parties included in the statement of financial position are as follows:


 

  2017   2016
AED’000   AED’000
Loans and advances  
To key management staff

775

811

To members of Board of Directors

9,277

8,732

To others

4,035

 
Customers’ deposits  
From others

11,084

13,704

 

Significant transactions with related parties during the year were as follows:

 

 

For the year ended 31 December

  2017 2016
  AED’000   AED’000
Interest income  
From key management

16

23

From Board of Directors

312

751

 
   
Interest expense  
To others

80

95

 
Key management remuneration  
Short term benefits (salaries, benefits and bonuses)

21,941

24,283

 

Balances with related parties include loans granted to Directors and their related parties in the normal course of business amounting to AED 9,277 thousand as at 31 December 2017 (2016: AED 8,732 thousand).  These loans are repayable over 12 months and carry fixed interest rates of 6.5% p.a (2016: fixed interest rates of 6.5% p.a).