Abu Dhabi Islamic Bank posts 4% profit rise in 2019
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Abu Dhabi Islamic Bank posts 4% profit rise in 2019

Abu Dhabi Islamic Bank posts 4% profit rise in 2019

The bank’s group net revenues for 2019 grew 2.5 per cent to Dhs5.91bn compared to Dhs5.769bn in 2018

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Abu Dhabi Islamic Bank (ADIB), posted a net profit of Dhs2.6bn in 2019, marking a 4 per cent rise compared to Dhs2.5bn in 2018, it announced on Wednesday.

The bank’s group net revenues for 2019 grew 2.5 per cent to Dhs5.91bn compared to Dhs5.769bn in 2018, due to growth in customer finance, higher investment and foreign exchange income, a statement said.

Meanwhile, total assets as of 31 December 2019 stood at Dhs125.9bn, representing an increase of 0.6 per cent from Dhs125.2bn in 2018.

The bank’s common equity tier 1 ratio of 13.11 per cent and capital adequacy ratio of 18.88 per cent remains above the minimum requirements.

ADIB’s credit provisions and impairments for 2019 increased by 6.1 per cent to Dhs658.1m compared to Dhs620.1m in 2018, with net cost of risk increasing to an annualised 78 bps.

Mazin Manna, ADIB group CEO, said: “At a time when competition in the banking industry has intensified, we were able to grow our revenues reflecting successful business strategies and product propositions. This underlying performance, coupled with progress in our long-term strategic initiatives, helped us generate a significant return on shareholder value of 18.6 per cent.”

“Despite a low rate environment, our net profit margin was 4.25 per cent, helped by the positive impact of a low cost of funds that is supported by higher CASA balances. Our liquidity remains strong, with an advances-to-deposits ratio increasing in Q4 19 to 80 per cent reflecting our ability to make optimal use of the balance sheet.”

ADIB, holding over Dhs125bn in assets, is traded on the Abu Dhabi Securities Exchange, and maintains presence in six strategic markets: Egypt, where it has 70 branches, Saudi Arabia, the United Kingdom, Sudan and Iraq, the statement said.

Also read: Abu Dhabi Islamic Bank grants $80m Ijara facility to Oman Shipping Company


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