Abu Dhabi Islamic Bank says net profit hits more than $92m on lower provisions
Abu Dhabi Islamic Bank on Monday reported a 2011 fourth quarter net profit growth of 35 percent, helped by higher fee and commission income and lower provisions.
The lender made AED338.6m ($92.3m) in the last three months of 2011, compared with AED250.6m a year earlier, it said in a statement, as fees, commissions and foreign exchange rose 11.3 percent.
"ADIB's enhanced transaction banking and advisory-based investment banking franchises more than compensated for the decline in personal banking fees," the bank said.
ADIB booked AED180.5m in credit provisions in the fourth quarter, with total credit provisions in the year at AED821.1m, an increase of 9.6 percent over 2010.
Full year net profit grew 17.3 percent to AED1.425bn. Net customer financing increased to AED48.8bn in 2011, up 1.8 percent over 2010 while customer deposits decreased by 2.4 percent to AED55.2bn in 2011.
Tirad Mahmoud, CEO of the bank said the operating environment continues to remain challenging as the global financial crisis continues.
"We expect low single digit growth in both assets and liabilities for the UAE banking sector in 2012," he said, adding further provisions and impairments will be booked.
Most banks in the UAE have seen single digit growth in loans and advances as well as in deposits in the last year.