The amount, which is equivalent to 50 per cent of ADIB's 2024 net profit, was announced as the lender recorded a 26 per cent year-over-year to Dh6.9 billion for 2024, resulting in an industry-leading return on equity of 28 per cent.
Net profit after tax grew 16 per cent year on year to Dh6.1 billion. For the fourth quarter of 2024, net profit before tax reached Dh1.6 billion, up seven per cent year on year.
Revenue for 2024 improved by 14 per cent to Dh10.6 billion compared to Dh9.3 billion last year.“This growth was supported by strong increases in both income from financing activities and non-funding income. The strong business volumes across all segments and products, along with continued strength in fee-based businesses, played a significant role in this improvement,” the bank said in a statement.
Funded income grew by seven per cent year-over-year to Dh6.6 billion in 2024, compared to Dh6.1 billion last year. This growth was driven by solid business volumes. Net profit margin (NPM) reached 4.35 per cent.
Non-funded income grew by 28 per cent year-over-year to reach Dh4.1 billion in 2024, compared to Dh3.2 billion last year. This growth reflects continued strength in fee-generation revenues, which saw a 12 per cent increase from various product sales, and a 39 per cent growth in investment income.“Non-funded income now contributes 38 per cent to operating income, up from 34 per cent in 2023, underlining the continued strategic focus on revenue diversification,” the bank said.
Operating expenses for 2024 were Dh3.1 billion, reflecting a 3 per cent year-over-year increase. The cost to income ratio improved by 3.4 percentage points to 29.6 per cent in 2024, compared to 32.9 per cent in 2023.
Impairments fell 18 per cent to Dh620 million during 2024, translating to a cost of risk (CoR) of 53bps. The non-performing asset ratio improved to 4.0 per cent, its lowest level since Q1 2017, due to active remediation of the bank's legacy portfolio coupled with strong underwriting standards. The provision coverage ratio, including collaterals, improved by 17.9 percentage points to 157.4 per cent. The provision coverage ratio (excluding collaterals) improved to 81.5 per cent from 74.3 per cent year-over-year.
Total assets increased by 17 per cent year-over-year to reach Dh226 billion. Customer financing grew by 24 per cent year-over-year, representing Dh28 billion increase in financing in 2024. Customer deposits rose by 16 per cent year-over-year to Dh183 billion, compared with Dh157 billion last year.“This growth maintained a healthy funding mix, with a 9 per cent year-over-year growth in Current and Savings Accounts (CASA), which now comprise 61 per cent of total deposits,” the bank said.
ADIB maintained a robust capital position with a common equity tier 1 ratio of 12.1 per cent and a total capital adequacy ratio of 16.2 per cent. The bank's liquidity position was healthy and within regulatory requirements, with the advances to stable funding ratio at 81.0 per cent and the eligible liquid asset ratio at 17.8 per cent.
Total shareholders' equity rose 11 per cent year-over-year to Dh23 billion, led by growth in earnings.
“We believe this broad momentum sets up 2025 very well for ADIB. With the launch of 2035 Vision, we are putting into place a transformative roadmap that positions us at the forefront of our industry. It is a vision that will be fueled by technological advancements, an uncompromising focus on our customers, and a deep commitment to sustainability principles,” said Jawaan Awaidah Al Khaili, ADIB chairman.
“ADIB continued to successfully execute its ambitious growth strategy against a positive economic backdrop in the UAE. The Bank delivered solid financial performance, achieving record highs in net profit and return on equity. This is testament to ADIB's unique market position, our customer centric approach, underpinned by a solid balance sheet and prudent risk management. With our renewed 2035 vision, we aspire to build a future-proof bank that not only meets today's dynamic needs but also anticipates tomorrow's challenges. Our vision aligns closely with the national priorities, emphasizing the use of Gen AI, focusing on Emiratization and sustainability,” said Mohamed Abdelbary, ADIB's group chief executive officer.