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Wednesday, October 4, 2023

Abu Dhabi Islamic Bank’s net profit surges 61% in H1

Abu Dhabi Islamic Bank’s net profit soared by 61% in H1 2023, reaching Dh2.3 billion compared to Dh1.4 billion in H1 2022, reflecting a consistent trend of strong growth. Q2 2023 net profit reached Dh1.2 billion, with a remarkable 68% increase over Q2 2022.

H1 2023 revenue improved by 50% to Dh4.3 billion, showcasing an excellent income diversification mix and strong growth across all business segments and products. Funded income rose by 75% to Dh2.9 billion, driven by higher volumes and better margins, while non-funded income grew 14% to Dh1.3 billion due to a 15% increase in fees and commissions. Cost to income ratio improved significantly to 33.9% from 40.9% in the corresponding period, mainly driven by income growth and enhanced productivity.

Impairments grew by 62% to Dh369 million for H1 2023, but the provision coverage of non-performing financing (including collaterals) improved to 128.4%. Customer deposits rose 31% to Dh150 billion, with Current and Savings Accounts (CASA) contributing 66% of total deposits.

ADIB maintained a robust capital position with a Common Equity Tier 1 ratio of 12.82% and a total Capital Adequacy Ratio of 17.65%. The bank’s liquidity position was healthy, meeting regulatory requirements, with advances to stable funding ratio at 78.0% and eligible liquid asset ratio at 21.8%.

Jawaan Awaidah Al Khaili, Chairman of ADIB, highlighted the bank’s strong deposit inflows and market share growth, attracting around 96,000 new customers in H1 2023. Nasser Abdulla Al Awadhi, ADIB’s Group Chief Executive Officer, emphasized the significant improvements in operations and business, including investments in digital transformation, resulting in a record return on equity of 25%.

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