Abu Dhabi Islamic Bank (ADIB) has reported a net profit after-tax growth of 32% for the first quarter of 2024. The company’s net profit reached Dh1.45 billion from Dh1.1 billion in the same period a year prior.
The net profit before tax was Dh1.64 billion, up 41% compared to Q1 of 2023.
ADIB’s revenue improved by 24% in the first three months of 2023, rising from Dh2 billion to Dh2.5 billion due to growth across all the lender’s business segments and products. The return on equity (ROE) was 27%, “driven by sustained business momentum and a healthy and resilient local economy,” said ADIB Chairman Jawaan Awaidah Al Khaili.
The bank’s funded income grew by 19% to Dh1.7 billion compared to Dh1.4 billion in 2023. last year, driven by higher volumes and better margins.
Non-funded income grew by 35% to Dh827 million, aided by a 40% growth in fees and commissions, contributing 33% to operating income during the quarter versus 30% last year.
ADIB’s cost-to-income ratio was improved by 5.3 percentage points to 30.4%, driven by growth in income and enhanced productivity, while the impairment decreased 25% to Dh109 million.
“We had a very successful start into 2024 as we continued to see healthy underlying growth across all our businesses,” said Mohamed Abdelbary, Acting Group CEO of ADIB.
“Our progress was remarkable across all indicators and was driven by positive business growth, cost and risk discipline, and our ability to maintain a sound balance sheet foundation, including a solid capital position and a very strong liquidity profile.”
The bank’s total assets increased 13% to reach AED 195 billion, driven by 8% growth YoY in financing and 25% growth in investments. The customer deposits rose 13% to reach Dh160 billion versus Dh142 billion, with growth in current and savings accounts (CASA) comprising 66% of total deposits.
