Abu Dhabi Islamic Bank (ADIB) has announced a remarkable performance for the first half of 2024, with net profit after tax soaring by 30% year-over-year to Dh3.03 billion.
In the second quarter of 2024 alone, ADIB reported a net profit after tax of Dh1.58 billion, marking a 9% sequential and 29% year-over-year increase. The bank’s total assets surpassed Dh200 billion for the first time, driven by a strong 17% growth year-over-year, reaching Dh213 billion.
“We achieved another set of record results as second-quarter and first-half earnings reached new highs, with net profit after tax growing 30% to Dh3.03 billion, implying a strong return on equity of 29%, one of the highest levels in the region’s banking sector,” said HE Jawaan Awaidah Al Khaili, Chairman of ADIB. “This strong growth reflects the healthy and resilient local economy coupled with our focus on sustaining business momentum and delivering transformational initiatives.”
ADIB’s revenue for the first half of 2024 increased by 25% to Dh5.35 billion, compared to Dh4.26 billion in the same period last year. This growth was driven by higher business volumes across all segments, improved margins, and a significant rise in fee-based businesses. Funded income grew by 13% year-over-year to Dh3.3 billion, while non-funded income surged by 52% to Dh2 billion.
The bank also reported a substantial improvement in its cost-to-income ratio, which fell by 5.3 percentage points to 28.6%, reflecting growth in income and enhanced productivity. Impairments increased by 9% to Dh402 million, translating to an annualised cost of risk of 55 basis points. However, the non-performing asset ratio improved to 4.7%, its lowest level since the fourth quarter of 2018.
“On the digital front, we have made incredible progress in modernising our infrastructure to improve our client servicing and automating processes by making banking faster, easier, and more accessible for everyone,” stated Mohamed Abdelbary, Acting Group CEO. “We have surpassed 1 million registered users on our mobile application, reflecting the growing popularity of ADIB’s digital banking platform.”
