Wednesday, July 20, 2022 – 5:37 p.m
ABU DHABI, 20th July, 2020 (WAM) — Abu Dhabi Islamic Bank reported a 30% year-on-year growth in its net profit to reach 1.4 billion dirhams in the first half of 2022 compared to 1.1 billion dirhams in the first half of 2022. For the same period in 2021, driven by strong revenue growth and continuation of improving cost base and reducing provisions for financing and investment losses.
The bank’s revenue for the first half of 2022 recorded a 7% growth to reach 2,838 billion dirhams, compared to 2,644 billion dirhams in the first half of last year, as a result of which income from non-financial sources increased by 11%. On an annual basis, it reached AED 1.169 billion, driven by a 26% increase in fees and commissions, and financing income increased by 5% to AED 1.669 billion due to growth in customer financing.
Successful implementation of cost control processes and continued investment in digital initiatives led to a 0.2% year-on-year decline in operating expenses to AED 1.16 billion, leading to an improvement in the cost-to-income ratio by 3.1 percentage points. up to 40.9%.
Total assets increased by 9% year-on-year to reach 142 billion dirhams due to a growth of 10% in total funding and 30% growth in the investment portfolio.
Customer deposits recorded a 10% year-on-year growth to reach AED 115 billion, paralleling growth in current and savings account deposits.
Abu Dhabi Islamic Bank maintained a strong capital position, with a Tier 1 equity capital adequacy ratio of 12.8% and a total capital adequacy ratio of 18%.
The bank’s liquidity was stabilized at healthy levels, exceeding the minimum regulatory requirements, with an improvement in standard funding ratio of 85.1% and eligible liquid assets of 17.4%.
His Excellency Joanne Awaida Suhail Al Khaili, Chairman of ADIB Group’s Board of Directors, said: “ADIB has achieved strong growth in its net profit in the first half of the year as a result of a significant increase in its assets, revenues and gross. This outstanding performance reflects the strong momentum recorded by the bank’s core business within the framework of its growth strategy to 2025. For his part, ADIB’s Group CEO Nasser Al-Awadi said: “Our outstanding performance in the first half of 2022 has demonstrated our strong commitment to provide superior products and services to our valued customers and deliver long-term added value. To our shareholders, the Corporate Banking Group during this period This positive performance is reflected across our various businesses as the retail banking group also succeeded in achieving strong growth. Mohammad Abdul Bari, ADIB’s Group Chief Financial Officer, said: “The Bank’s strong performance in the first half was driven by a 7% increase in revenue and a 0.2% decrease in expenses. Our solid 17.3% Due to economic fundamentals and ability to take informed decisions, we have achieved 10% growth in current and savings account deposits and succeeded in increasing total customer funding on an annual basis.
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