Abu Dhabi Islamic Bank announced a remarkable 53% surge in its net profit for the first nine months of 2023, reaching Dh3.75 billion, compared to Dh2.5 billion during the same period in 2022.

In Q3 2023, the bank achieved a net profit of Dh1.4 billion, representing a 41% increase compared to Q3 2022.The bank’s revenue for the initial nine months of 2023 also saw substantial growth, rising by 48% to Dh6.7 billion, up from Dh4.5 billion in the previous year. This remarkable increase was attributed to a well-diversified income mix and strong growth across all of its business segments and product lines.

Funded income experienced a robust 61% growth, reaching Dh4.5 billion, compared to Dh2.8 billion in the same period the previous year, driven by higher volumes and improved margins.

Non-funded income also demonstrated notable growth, reaching Dh2.2 billion in the first nine months of 2023, marking a 28% increase compared to Dh1.7 billion in the corresponding period of the previous year, primarily due to a 24% growth in fees and commissions.

The bank successfully reduced its cost-to-income ratio, achieving a 5.0 percentage point improvement to 32.6%, compared to 37.6% in the same period last year. This reduction was primarily driven by increased income and enhanced productivity.

Impairments increased by 62%, reaching Dh571 million for the first nine months of 2023. The non-performing asset ratio improved to 6.6%, the lowest since Q1 2020, as a result of active management of legacy portfolios and adherence to robust underwriting standards. The coverage ratio, including collaterals, improved by 9.0 percentage points to 131.4%.

The bank’s total assets witnessed a 25% growth, reaching Dh184 billion, driven by a 14% year-over-year increase in gross financing and a 21% growth in investments. Customer deposits also rose by 28%, reaching Dh152 billion, compared to Dh138 billion during the same period in 2022.
This growth was mainly fueled by a 13% increase in Current and Savings Accounts (CASA), even in a high-interest rate environment, with CASA now accounting for 66% of total deposits.

Abu Dhabi Islamic Bank maintained a robust capital position, with a Common Equity Tier 1 ratio of 13.36% and a total Capital Adequacy Ratio of 18.03%. The bank’s liquidity remained healthy and well within regulatory requirements, with an advances to stable funding ratio at 78.6% and an eligible liquid asset ratio at 18.8%.

Jawaan Awaidah Al Khaili, Chairman of ADIB, commented, “ADIB achieved another record performance in the first nine months of 2023, with net profit growing by 53%, achieving a new high of Dh3.75 billion, surpassing what was achieved in the full year of 2022.”

Nasser Abdulla Al Awadhi, ADIB’s Group Chief Executive Officer, noted, “We are entering the last quarter of 2023 with a strong financial position, strong capital and liquidity ratios, stable asset quality, and improved returns. This will enable us to capture business opportunities and identify new growth areas.”

Mohamed Abdelbary, Group Chief Financial Officer, added, “Our record profitability reflects improvements in the underlying operating performance across all business lines.

In the first nine months of 2023, ADIB was able to sustain the strong business and financial momentum while maintaining a strong balance sheet with healthy liquidity, asset quality, and capital ratios, thereby laying solid foundations for future growth.”

Last Updated: 26 October 2023