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Emirates International Investment Company (EIIC), the investment arm of National Holdings, raised its interest in Abu Dhabi Islamic Bank (ADIB) to 47% by acquiring a 7.6% stake from Mubadala Investment Company.
The transaction reflects the company’s strong confidence in the long-term growth prospects of the UAE’s second-largest Islamic bank by assets.
The EIIC has a wide range of interests across a number of sectors, including banking, asset management, real estate, hospitality, fintech, and food and agriculture. As a global investor, the acquisition of ADIB’s shares is in line with Mubadala’s strategy to create long-term value by optimizing its global portfolio in various sectors. As one of the largest investors in the sector, Mubadala remains committed to the UAE banking sector.
Net profit jumps
In the first quarter of 2023, ADIB reported a 54% jump in net profit to AED1.1 billion (US$300 million). The bank also reported a record revenue of AED 2 billion for the period, up 45% year-on-year. This was driven by an 81% increase in financing revenue to AED 1.4 billion, driven by growth in client financing and higher margins.
ADIB also achieved a record return on equity of 23.4%. The Sharia-compliant bank continues to attract customers, welcoming 46,000 new customers in the first three months of 2023 alone.
The acquisition is likely to benefit both companies, enabling ADIB to further expand its business and improve profitability, while providing EIIC with a stable and profitable investment. The acquisition also underscores the UAE’s reputation as the region’s preferred investment destination, as well as its vibrant and fast-growing banking sector. — trade arab news agency
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