ADIB reports highest quarterly net profit for Q3 2022, crossing Dhs1bn

Abu Dhabi Islamic Bank (ADIB) reported its highest quarterly net profit equalling Dhs1bn in Q3 2022, compared to Dhs493m recorded in Q3 2021, marking a 105 per cent growth.

Meanwhile, the bank registered a year-on-year growth in net profit of 53 per cent for the first nine months of 2022, totalling Dhs2.45bn from Dhs1.6bn recorded during the corresponding period of 2021.

Revenue for first nine months of 2022 improved 10 per cent to Dhs4.51bn, compared to Dhs4.09bn last year. This was driven by 22 per cent increase in fees and commissions and 10 per cent growth in funded income to Dhs2.80bn, achieved from the growth in customer financing and higher rates, official news agency WAM reported.

#ADIB reports its highest quarterly net profit for Q3 2022, with 105% year- on year net profit growth to cross the AED 1 billion mark for the first time. pic.twitter.com/kjjLF5XYT3

— ADIB Tweets (@ADIBTweets) October 25, 2022

Cost to income ratio was managed down to cross the 40% mark for the first 9 months with an improvement of 4.6 percentage points to 37.6%. This was helped by higher revenues and cost inititaives driven by the ongoing investment in digital initiatives that brought expenses down by 2% year-on-year to AED 1,699 million

Impairments declined 53 per cent year-on-year to Dhs352m for the first nine months of 2022. However, total assets increased 10 per cent year-on-year to reach Dhs147bn, driven by 16 per cent growth in gross financing and 42 per cent in investments, while customer deposits rose 11 per cent year-on-year to Dhs119bn.

ADIB’s common equity tier 1 ratio stood at 12.8 per cent and  total capital adequacy ratio equalled 17.9 per cent.

“ADIB is pleased to report its best quarterly results ever. We were able to cross the Dhs1bn mark in net profit for a quarter underpinned by strong business momentum. Our initiatives to diversify our income, expand into new segments while managing asset quality and improving our costs served us well to deliver a record ROE of 19.6 per cent,” said Jawaan Awaidah Al Khaili, chairman of ADIB.

Earlier this month, the bank unveiled a new offering aimed at small and medium-sized businesses (SMEs) in the UAE.

Read: Abu Dhabi Islamic Bank launches ‘small business finance’ to support SMEs