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Abu Dhabi Islamic Bank (ADIB) on Wednesday reported a growth in net profit after tax of 30 per cent for H1 2024 to Dh3.03 billion from Dh2.33 billion in H1 2023. A strong balance sheet growth coupled with enhanced net profit margins and fee-based income generation has fueled the bank’s performance.
Net profit before tax was Dh3.42 billion, up 40 per cent versus H1 2023. Revenue for H1 2024 improved by 25 per cent to Dh5.35 billion compared to Dh4.26 billion last year for the same period supported by strong business volumes across all business segments and products, and continued strength in fee-based businesses.
Abu Dhabi Islamic Bank (ADIB) on Wednesday reported a growth in net profit after tax of 30 per cent for H1 2024 to Dh3.03 billion from Dh2.33 billion in H1 2023. A strong balance sheet growth coupled with enhanced net profit margins and fee-based income generation has fueled the bank’s performance.
Net profit before tax was Dh3.42 billion, up 40 per cent versus H1 2023. Revenue for H1 2024 improved by 25 per cent to Dh5.35 billion compared to Dh4.26 billion last year for the same period supported by strong business volumes across all business segments and products, and continued strength in fee-based businesses.
Non-funded income grew by 52 per cent YoY to reach Dh2.0 billion in H1 2024 versus Dh1.3 billion last year driven by 28 per cent growth in fees and commissions from Investment banking, retail and cards. Non-funded Income contributes 38 per cent to Operating Income versus 31 per cent in H1 2023, underlining continued strategic focus on revenue diversification.
Cost to income ratio improved by 5.3 percentage points to 28.6 per cent versus 33.9 per cent in the previous year. “This was predominantly driven by growth in income and enhanced productivity,” the bank said.
Impairments increased nine per cent to Dh402 million for H1 2024 in line with financing growth and prudent risk management translating to an annualized cost of risk (CoR) at 55bps. Non-performing asset ratio improved to 4.7 per cent, its lowest level since Q4 2018, due to active management of our legacy portfolio coupled with strong underwriting standards.
Provision coverage ratio, including collaterals, improved by 20.8 percentage points to 149.3 per cent.
Total assets surpassed Dh200 billion milestone, increasing 17 per cent YoY to reach Dh213 billion, driven by 21 per cent growth YoY in financing as retail financing delivered a strong quarter, reflecting market share gains across key segments, and corporate banking closing landmark deals.
Customer financing grew 15 per cent YTD with Dh16 billion of new financing extended to customers.
Customer deposits rose 15 per cent YoY to reach Dh172 billion versus Dh150 billion in H1 2023, maintaining a healthy funding mix with 9 per cent growth in Current and Savings Accounts (CASA), with CASA comprising 63 per cent of total deposits.
ADIB maintained a robust capital position with a Common Equity Tier 1 ratio of 12.9 per cent and a total capital adequacy ratio of 17.2 per cent. The bank’s liquidity position was healthy and within regulatory requirements, with the advances to stable funding ratio at 79.5 per cent and the eligible liquid asset ratio at 19.7 per cent.
“We achieved another set of record results. Our second-quarter and first-half earnings for 2024 reached new highs, with notable improvement across all metrics and total asset base crossing the Dh200 billion threshold for the first time,” said. Jawaan Awaidah Al Khaili, chairman.
“Our first-half 2024 results reflect sustained growth across all business lines, driven by robust financing activity, a diversified funding base, and a broadening revenue mix,” said Mohamed Abdelbary, acting group chief executive officer.
Khaleej Times
