ADIB Achieves Record AED 6.1 Billion Net Profit For Financial Year 2024

Abu Dhabi Islamic Bank (ADIB) reported a remarkable financial performance in 2024. The bank's net profit after tax reached AED6.1 billion, marking a 16% rise from AED5.25 billion in 2023. Net profit before tax saw a 26% increase year-over-year, amounting to AED6.9 billion. In the last quarter of 2024, the net profit before tax was AED1.6 billion, reflecting a 7% growth compared to the previous year.

ADIB's revenue for 2024 grew by 14%, reaching AED10.6 billion, up from AED9.3 billion in the prior year. This increase was driven by significant gains in both financing activities and non-funding income. The bank's total assets expanded by 17% year-over-year, totalling AED226 billion. This asset growth was propelled by advances in retail and corporate banking financing and an enlarged investment portfolio.

Customer financing experienced a substantial rise of 24% year-over-year, adding AED28 billion in financing for 2024. Meanwhile, customer deposits increased by 16%, reaching AED183 billion compared to AED157 billion the previous year. These figures highlight ADIB's strong position in attracting and retaining customer funds.

Capital Position and Liquidity

ADIB maintained a solid capital foundation with a Common Equity Tier 1 ratio of 12.1% and a total Capital Adequacy Ratio of 16.2%. The bank's liquidity remained robust, adhering to regulatory standards with an advances-to-stable funding ratio at 81% and an eligible liquid asset ratio at 17.8%. These metrics underscore ADIB's financial stability and prudent risk management practices.

The Board of Directors proposed a cash dividend per share of 83 fils for the year, totalling AED3.030 billion. This recommendation reflects the bank's commitment to delivering value to its shareholders while maintaining financial strength.

Total shareholders' equity rose by 11% year-over-year to reach AED23 billion, driven by earnings growth. The return on equity (RoE) stood at an impressive 28% in 2024, showcasing ADIB's efficiency in generating returns for its investors.

ADIB's performance in 2024 highlights its strategic focus on growth across various banking segments while ensuring financial stability and shareholder value enhancement through prudent management practices and robust capital positioning.

With inputs from WAM