ADIB Delivers Strong Q1 Performance With AED 1.45 Billion Net Profit In 2024

Abu Dhabi Islamic Bank (ADIB) has reported a significant increase in its financial performance for the first quarter of 2024, showcasing a robust growth trajectory. The bank's net profit after tax surged by 32 percent, reaching AED1.45 billion up from AED1.1 billion in the same period last year. This growth is attributed to a comprehensive increase across all business segments and products, underlining ADIB's strong market position.

The bank's revenue saw a 24 percent increase, amounting to AED2.5 billion compared to AED 2.0 billion in Q1 2023. This improvement was supported by a 19 percent growth in funded income, which amounted to AED1.7 billion, and a 35 percent increase in non-funded income, reaching AED827 million. The latter was notably driven by a 40 percent growth in fees and commissions, highlighting the bank's diversified income streams.

ADIB also reported enhancements in operational efficiency, with the cost to income ratio improving by 5.3 percentage points to 30.4 percent. This improvement reflects the bank's focus on income growth and enhanced productivity. Additionally, impairments decreased by 25 percent to AED 109 million for Q1 2024, and the Non-Performing asset ratio improved to 5.5 percent, the lowest since Q4 2019.

The bank's total assets experienced a 13 percent increase, reaching AED 195 billion, driven by growth in financing and investments. Customer deposits also rose by 13 percent to AED 160 billion, with Current and Savings Accounts (CASA) growing by 9 percent and comprising 66 percent of total deposits.

ADIB maintained a strong capital position with a Common Equity Tier 1 ratio of 12.6 percent and a total Capital Adequacy Ratio of 17.2 percent. The bank's liquidity position remained healthy and within regulatory requirements.

Jawaan Awaidah Al Khaili, Chairman of ADIB, commented on the results: "Building on a record year in 2023, we started 2024 on a strong note with net profit after tax growing 32 percent to AED1.45 billion and a return on equity of 27 percent reflecting the healthy and resilient local economy coupled with our focus on sustaining business momentum and delivering transformational initiatives."

He further highlighted the bank's commitment to leveraging technology and continuous investment in digital innovations as key drivers for deepening customer relationships and expanding the customer base across all businesses.

Mohamed Abdelbary, Acting Group Chief Executive Officer of ADIB, added: "We had a very successful start into 2024 as we continued to see healthy underlying growth across all our businesses. Our progress was remarkable across all indicators and was driven by positive business growth, cost and risk discipline, and our ability to maintain a sound balance sheet foundation."

This financial update from ADIB not only demonstrates the bank's solid performance but also its strategic focus on sustainable growth and operational efficiency. With an emphasis on technological advancement and customer-centric approaches, ADIB is well-positioned for continued success in the competitive banking sector.

With inputs from WAM