(MENAFN- Khaleej Times) Abu Dhabi Islamic bank on Wednesday reported a 53 per cent growth in net profit for the first nine months of 2023 to Dh3.75 billion from Dh2.5 billion in first nine months of 2022. Net profit for Q3 2023 reached Dh1.4 billion with 41 per cent growth versus Q3 2022.
Revenue for the first nine months of 2023 improved by 48 per cent to Dh6.7 billion compared to Dh4.5 billion last year due to excellent income diversification mix and strong growth across all business segments and products. Funded income grew by 61 per cent to Dh4.5 billion vs Dh2.8 billion in the corresponding period of last year, driven by higher volumes and better margins. Non-funded income grew by 28 per cent to reach Dh2.2 billion in the first nine months of 2023 versus Dh1.7 billion in the corresponding period of last year driven by 24 per cent growth in fees and commissions.
Cost to income ratio was managed down with an improvement of 5.0 percentage points to 32.6 per cent versus 37.6 per cent in the corresponding period. This was predominantly driven by growth in Income and enhanced productivity.
Impairments grew 62 per cent to Dh571 million for the first nine months of 2023. Non-Performing asset ratio improved to 6.6 per cent lowest since Q1 2020 due to active management of legacy portfolio coupled with strong underwriting standards whilst the Coverage ratio (including collaterals) improved by 9.0 percentage points to 131.4 per cent.
Total assets increased 25 per cent to reach Dh184 billion, driven by 14 per cent growth YoY in gross financing and 21 per cent growth in investments.
Customer deposits rose 28 per cent to reach Dh152 billion versus Dh138 billion in the corresponding period of 2022 driven mainly by 13 per cent growth in Current and Savings Accounts (CASA) despite the high-rate environment with CASA now comprising 66 per cent of total deposits.
ADIB maintained a robust capital position with a Common Equity Tier 1 ratio of 13.36 per cent and a total Capital Adequacy Ratio of 18.03 per cent. The bank's liquidity position was healthy and comfortably within regulatory requirements, with the advances to stable funding ratio at 78.6 per cent and the eligible liquid asset ratio at 18.8 per cent.
“ADIB achieved another record performance in the first nine months of 2023, with net profit growing 53 per cent achieving a new high of Dh3.75 billion, surpassing what was achieved in the full year of 2022,” Jawaan Awaidah Al Khaili, chairman of ADIB, said.
“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 capture business opportunities and identify new growth areas,” said Nasser Abdulla Al Awadhi, ADIB's group chief executive officer.
“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,” Mohamed Abdelbary, group chief financial officer, said.
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