Abu Dhabi Islamic Bank (ADIB) recorded a 43 percent year-on-year surge in net profits for the first nine months of 2021, driven by a 4 percent growth in revenue.
The Islamic lender’s net profit increased to AED 1.60 million ($435,611), compared to AED1.12m ($304,927) over the same period last year; while total revenue peaked at AED4.09m ($1.11m) as opposed to AED3.93m ($1.07m) across the opening nine months in 2020.
According to a statement on Sunday, the bank maintained cost discipline with an 8 percent decline in expenses, amid heavy investments in digital initiatives, and an improvement in cost-to-income ratio by 535 basis points to 42.2 percent.
Provisions for bad loans in the first nine months fell by 21 percent to AED751m ($204.5m).
“Looking ahead and despite ongoing uncertainties, we believe that the UAE economy has the potential to have extremely robust, multi-year growth supported by positive consumer sentiment around the end of the pandemic,” said Jawaan Awaidah Al Khaili, ADIB’s chairman.
“In Q3 2021, ADIB has continued to deliver strong growth in revenues of 5 percent driven by higher income from financing and a growth in investment income. This has resulted in a strong 43 percent year-on-year growth in our net profit which led to a healthy return on equity of 13 percent,” added Mohamed Abdelbary, group CFO at ADIB.
ADIB maintained a strong asset base with total assets reaching AED 133.4 billion ($36.3bn) as of September 30, 2021, up 4.9 percent compared to September 30, 2020.
The bank also registered a 30 percent rise in digitally active customers in the first nine months of 2021, with its digital platform hosting more than 700,000 digitally enabled customers.
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