Abu Dhabi Islamic Bank reported a growth of 61 per cent in net profit in the first half of 2023 to AED2.3bn ($626m) from AED1.4bn ($381m) last year, according to the bank’s H1 2023 financial results.
Net profit for Q2’23 reached AED 1.2bn with 68 per cent growth versus Q2’22.
Revenue in H1’23 improved by 50 percent reaching AED4.3bn compared to AED 2.8 billion last year, due to excellent income diversification mix and strong growth across all business segments and products.
Abu Dhabi Islamic Bank results
Funded income grew by 75 per cent to AED2.9bn versus AED1.7bn in the corresponding period of last year, driven by higher volumes and better margins, while non-funded income grew by 14 per cent to reach AED1.3bn versus AED1.2bn in the corresponding period of last year driven by 15 per cent growth in fees and commissions.
The bank’s cost to income ratio was managed down with an improvement of 7.0 percentage points to 33.9 percent versus 40.9 percent in the corresponding period last year.
As for total assets for the Abu Dhabi bank, they increased 28 percent settling at AED182bn, driven by 18 per cent growth in gross financing and 22 per cent growth in investments.
Customer deposits rose 31 per cent to reach AED150bn versus AED115bn in H1’22 driven.
Abu Dhabi Islamic Bank Chairman Jawaan Awaidah Al Khaili said: “ADIB reported a record performance in the first half of 2023, delivering net profit of AED2.3bn, record revenue of AED4.3bn, which equates to an average return on equity of 25 per cent reflecting the success of the group’s diversified business model and a healthy regional economy.
“Our ability to deliver strong business momentum is the result of our solid capital position, prudent risk management, diversified business lines and nimble execution of our strategy underpinned by an on-going digital and innovation strategy.
“We have benefited from strong deposit inflows and grew our market share by attracting approximately 96,000 new customers to ADIB in the first half of 2023 emphasising the strength of our brand.”
Nasser Abdulla Al Awadhi, Abu Dhabi Islamic Bank’s Group Chief Executive Officer, said: “ADIB has delivered another strong set of results in the first half of 2023 with net profit up 61 percent year-on-year driven by 50 percent growth in revenues on the back of increased transaction volumes and improved margins led by an efficient funding base and higher yields.
“Both our Retail and Corporate Businesses have performed well with high quality income growth and double-digit returns.
“The momentum across the Group allows us to maintain a robust capital position and deliver attractive high returns to shareholders.”
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