Abu Dhabi Islamic Bank (ADIB) reported a 45% growth in net profit for 2023, reaching Dh5.25 billion compared to Dh3.62 billion in 2022. The bank’s Q4 2023 net profit stood at Dh1.5 billion, reflecting a 29% increase from Q4 2022.
Revenue for 2023 improved by 36% to Dh9.3 billion, driven by solid growth across all business segments and products. Funded income grew by 47% to Dh6.1 billion, while non-funded income reached Dh3.2 billion with an 18% increase in fees and commissions.
Following the robust results, the bank’s board recommended a dividend payout increase to 71 fils per share, up from 49 fils per share in 2022.
“ADIB produced outstanding results in 2023 exceeding the Dh5 billion milestone in net profit,” said Jawaan Awaidah Al Khaili, Chairman of ADIB. “The substantial increase in profitability and the strength of our capital position has allowed us to recommend an increase in our dividend payout.”
The cost-to-income ratio improved to 32.9%, down 2.0 percentage points from the previous year, attributed to income growth and enhanced productivity. Impairments decreased by 1% to Dh760 million, and the non-performing asset ratio improved to 6.1%, the lowest since Q4 2019.
“Looking ahead for 2024 and while the global economic outlook remains uncertain, we are confident that our strong financial position, strong capital and liquidity ratios will enable us to capture business opportunities and identify new growth areas and continue to see broad-based income momentum across the Group,” said Nasser Abdulla Al Awadhi, Group Chief Executive Officer (GCEO)
The coverage ratio, including collaterals, increased by 11.6 percentage points to 139.5%.
Total assets grew by 14% to Dh193 billion, fueled by a 6% year-on-year increase in gross financing and a 26% growth in investments. Customer deposits rose 14% to Dh157 billion, driven by a 9% growth in current and savings accounts (CASA), comprising 65% of total deposits.
ADIB maintained a robust capital position with a common equity tier 1 ratio of 12.2% and a total capital adequacy ratio of 16.8%. The bank attracted approximately 206,000 new customers in 2023, bringing the total customer base to 1.271 million.
