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Abu Dhabi Islamic Bank (Adib) posted a record full-year 2022 net profit of AED3.62 billion (US$990 million), a 55% increase from the previous year, pointing to continued strong growth and profitability in 2022.
Adib also posted its highest quarterly net profit of AED 1.2 billion in the fourth quarter of 2022, compared to AED 728 million in the fourth quarter of 2021, an increase of 60% compared to the same period last year.
In 2022, Adib’s revenue increased by 23% to 6.835 billion dirhams from 5.56 billion dirhams last year. This was due to a 43% increase in fees and commissions and a 24% increase in financing income to AED 4,151 million, driven by growth in client financing and higher margins.
Cost to income ratio
The cost-to-income ratio dropped 5.7 percentage points to 34.9%. This was achieved despite slightly higher costs, up 6% year-on-year to AED 2,387 million, reflecting continued investment in strategic and digital initiatives.
Impairments in 2022 are down 19% year-on-year to AED 769 million, reflecting the overall improvement in economic conditions. The drop came while raising the provision coverage ratio for non-performing financing (including collateral) by 7.9 percentage points to 127.9%.
Total assets rose 23% year-on-year to AED169 billion, driven by a 22% increase in total financing and a 42% increase in investments. Despite the high interest rate environment, customer deposits rose 26% year-on-year to AED138 billion, mainly driven by a 14% increase in current and savings accounts (CASA).
solid capital position
After adjusting for the proposed 2022 dividend, Adib maintains a solid capital position with a common equity tier 1 capital ratio of 12.08% and a total capital adequacy ratio of 17.17%. The bank’s liquidity position is healthy and in line with regulatory requirements, with an advance stable funding ratio of 82.1% and a qualified liquid asset ratio of 18.9%.
“2022 will be an unprecedented year for Adib as we deliver a record AED3.62 billion performance for the first time in our history. The tireless work of our team and unwavering commitment to excellence has helped us “Successfully set new standards. Our initiatives in diversifying revenue, expanding into new market segments, and managing asset quality delivered us a return on equity of 21.4%. This made the Board of Directors A dividend of 49 fils per share is proposed, compared to 31 fils in 2021.
“We are already seeing the consolidation of Adib Egypt in the fourth quarter of 2022. Our investments in Egypt reflect our confidence in Egypt’s future economic prospects. Our efforts this year have seen us named the best bank in the UAE by the Financial Times, This is a testament to our solid financial performance and pioneering approach to digital banking innovation.
Embed ESG
“We are also committed to integrating sustainability and ESG into our 5-year plan and we are seeing sustainability really integrated into our business. We look forward to working with UAE organizations and our peers to develop innovative solutions as the UAE The Year of Sustainable Development. This will allow us to drive environmental and economic progress.
“These results, together with our positive outlook for the local economy, will allow us to accelerate investment and lay the foundations for the next phase of growth. We will continue to support the national economy and look forward to playing a significant role in the UAE’s sustainable development agenda, “He said.
extraordinary year
Nasser Al Awadhi, Group Chief Executive Officer, said: “Last year was extraordinary for Adib as we achieved record breaking results across all matrices, continuing the strong operational performance that Adib delivered throughout the year. We We saw broad-based revenue momentum across all operating businesses, where we continued to gain market share, positioning us to deliver one of the market’s highest returns on equity of 21.4%.
“Our broad client financing grew 22% this year, with growth in both retail and corporate books and driving a 24% increase in financing revenue. This is a testament to our leading original capabilities and our commitment to expanding markets through specialty products and innovative solutions Continued focus on share.The positive drivers we’ve seen in the business over the past few quarters have translated into solid fee revenue growth of 43%.
“Our cost-to-income ratio improved by 5.7 percentage points to 34.9%. This was achieved despite a slight increase in costs, up 6% year-on-year to AED 2,387 million, reflecting continued focus on strategic and digital initiatives. invest.
2025 Commitment
“We are making good progress on our 2025 commitments, both strategically and financially. We have exceeded all our expectations in terms of revenue growth and achieving higher return on equity. With this in mind, we will Informing stakeholders about our next phase of growth and how we will continue to build on this positive momentum.
“With the integration of Adib Egypt, our franchise has been strengthened. This will help us further expand our presence in Egypt, one of the most promising strategic markets in the region, underscoring our commitment to the Egyptian economy. Be confident.
“Looking ahead, while the global economic outlook remains uncertain and inflationary pressures are evident, we believe our strong balance sheet, capital levels and liquidity, combined with our innovative and agile spirit, will position us well to Seize new opportunities and continue to support our business customers, businesses and the UAE economy to thrive. We will continue to identify new areas of growth and invest our resources to deliver sustainable shareholder returns and implement our growth and transformation plans.”
expand profit margins
Mohamed Abdelbary, Group Chief Financial Officer, said: “Margins expanded by 47 basis points in 2022 as rising interest rates impacted our financial portfolio, offsetting higher funding costs. The bank delivered significant growth across all business segments, with fee income Growth of 43% compared to last year. Our customer financing growth rate reached a record 22%, while we maintained a healthy balance sheet, strong liquidity and good asset quality, our non-performing loan ratio decreased by 1.2% compared with the same period last year.
“We have made significant progress in advancing our digital agenda and are delighted that we have extended our digital offerings to business banking.” — trade arab news agency
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