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Abu Dhabi Islamic BankThe UAE’s largest Shariah-compliant lender reported its highest quarterly net profit of over AED1 billion ($274.9 million) in the third quarter of 2022, driven by growth across all key businesses.
This bank In a report, ADIB said net profit rose by nearly 105% year-on-year compared to the same period last year, when its net profit stood at AED493 million. statement to the Abu Dhabi Stock Exchange, where its shares are traded.
The bank’s net profit for the first nine months of the year rose by 53% year-on-year to more than AED2.4 billion from AED1.6 billion in the same period last year.
Revenue for the January-September period rose 10 percent to more than AED4.5 billion, compared to AED4 billion last year.
The bank said the increase was driven by a 22% rise in fees and commissions and a 10% rise in financing income to AED2.8 billion, supported by growth in customer financing and higher interest rates.
“These strong results, along with our positive outlook for the local economy, will allow us to accelerate investments to support our next phase of growth,” said ADIB Chairman Jawaan Al Khaili.
“Going forward, we will continue to strive to create value for all our stakeholders as we aim to be the most innovative Islamic bank in the world. We are confident in the economic prospects of the UAE and the region, and will seek to serve customers and Shareholders accelerate our progress,” he added.
In the first nine months of 2022, its impairments fell 53% annually to AED352 million, reflecting an overall improvement in economic conditions, the bank said.
Total assets rose 10% annually to AED147 billion, driven by a 16% increase in total financing and a 42% increase in investment. In a statement, ADIB said customer deposits from strong current and savings accounts rose 11% year-on-year to AED119 billion.
Higher interest rates and a broad recovery of the UAE economy from the Covid-19 pandemic-induced slowdown are expected to boost the profitability of UAE banks, Egyptian investment bank EFG Hermes said in a recent report.
In a report on the UAE banking sector, the bank said it expected a 300 basis point (bps) rise in U.S. interest rates to push up lenders’ net interest income.
A 25bps rate hike would mean the lender’s net interest margin widened by about 5bps and earnings per share rose 3%.
“Looking ahead, while the global economic outlook remains uncertain due to inflationary pressures, we believe that our strong balance sheet, capital levels and liquidity, combined with our innovative and nimble spirit, will position us well Seize new opportunities,” said Nasser Al Awadhi, Group President of the bank.
“We will continue to look for new growth areas and invest our resources to deliver sustainable shareholder returns and pursue our growth and transformation plans,” he added.
Updated: 10/25/2022 5:52pm
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