ADIB reports net profit growth of 30% in first half of 2022

ADIB reports net profit growth of 30% in first half of 2022

Abu Dhabi Islamic Bank (ADIB) reported year-on-year (YoY) growth in net profit of 30% for the first half (H1) of 2022 to AED 1.4 billion from AED 1.1 billion of same period last year, resulting from solid top-line growth, continued optimisation of the cost base and lower impairments.

The bank revenue for the first half of the current year improved 7 percent to AED 2,838 million compared to AED 2,644 million last year. This arose from an 11 percent year-on-year increase in non-funded income to AED 1,169 million driven by 26 percent increase in fees and commissions and 5 percent growth in funded income to AED 1,669 million, achieved from the growth in customer financing.

The bank cost discipline was maintained amid ongoing investment in digital initiatives with operating expenses declining 0.2 percent YoY to AED 1,160 million and the cost-to-income ratio improved 3.1 percentage points to 40.9 percent. Impairments declined 38 percent YoY to AED 227 million for the first half of 2022, reflecting an overall improvement in economic conditions. This reduction was achieved while improving the provision coverage of non-performing financing (including collaterals) by 8.5 percentage points to 123.7 percent.

Total assets increased 9 percent YoY to reach AED 142 billion, driven by 10 percent growth in gross financing and 30 percent in investments. Customer deposits rose 10 percent YoY to AED 115 billion from strong Current and Savings Accounts (CASA). ADIB maintained a robust capital position with a common equity tier 1 ratio of 12.8 percent and a total capital adequacy ratio of 18.0 percent. Further, the bank’s liquidity position was healthy and comfortably within regulatory requirements, with the advances to a stable funding ratio at 85.1 percent and the eligible liquid asset ratio at 17.4 percent.

Jawaan Awaidah Al Khaili, Chairman of ADIB, said,

"ADIB delivered robust year-on-year net profit growth of 30 percent in the H1 2022 underscored by positive increases in our assets, revenues, and gross financing. Our performance reflects solid momentum across our core businesses under our 2025 growth strategy, and improved macroeconomic conditions. The tangible progress ADIB has made against our strategic growth initiatives and investments in products, services, and technology is bearing fruit, with return on equity increasing 3.7 percentage points to 17.3 percent, well on track towards our ambition of 20 percent by 2025.''

"As we look ahead we will continue to work towards creating value for all our stakeholders as we aim to become the world’s most innovative Islamic bank. We are confident in the economic outlook for the UAE and the region, and will look to accelerate our progress for both customers and shareholders alike."

Nasser Al Awadhi, ADIB Group CEO, said,

"The first half of 2022 saw a relentless commitment to delivering the very best products and services to our customers and long-term value for our shareholders. Positive performance was achieved across our businesses, with both our Retail and Wholesale divisions achieving strong top-line growth. I am particularly pleased with our ability to generate robust fee income, including the supporting the healthy stream of IPOs, which led to 7% yoy revenue growth for the Group.''

News Source: Emirates News Agency

- Advertisement -
Dark Light