Abu Dhabi: Abu Dhabi Islamic Bank (Adib) Group on Sunday reported a first half net profit of Dh864.3 million, an increase of 21.5 per cent compared to Dh711.4 million in the fist half of 2013.
The group’s net revenues for the first half of 2014 increased by 15.3 per cent to Dh2.15 billion, compared to Dh1.86 billion in the same period in 2013.
For the second quarter of the year, the group posted a 22.5 per cent increase in net profit to Dh454.8 million, with total assets growing 15.4 per cent to Dh105.7 billion compared to the second quarter of 2013.
Adib’s customer deposits increased by 18.2 per cent year-on-year and stood at Dh79 billion at the end of the second quarter of 2014. The bank’s net customer financing assets grew by 15.4 per cent compared to the second quarter of 2013 to reach a new high of Dh64.9 billion as a result. Adib ended the quarter with a customer financing to deposits ratio of 82.1 per cent and advances to stable funds ratio of 79 per cent.
“The continued success of Adib’s strategy, and our ability to implement it, is clear and the group has delivered a 22.5 per cent year-on-year increase in net profit to Dh454.8 million for the second quarter of 2014 on the back of a 15.4 per cent increase in customer financing assets and 18.2 per cent growth in customer deposits over the past year,” said Tirad Al Mahmoud, CEO of Adib.
Credit provisions and impairments for the fist half of 2014 increased by 7.4 per cent to Dh392.3 million compared to Dh365.4 million for the first half of 2013.
During the second quarter, non-performing accounts as a percentage of gross customer financing decreased to 7.1 per cent compared to 9.6 per cent as at June 30, 2013.
The bank’s total credit provisions increased by 10.9 per cent to Dh159.8 million during the second quarter of 2014 as it further increased its buffer in anticipation of the launch of the new UAE credit bureau.
Total net credit provisions now represent a pre-collateral non-performing coverage ratio of 66.5 per cent of the total non-performing portfolio and 82.2 per cent of the impaired portfolio.
“We added a further Dh175.8 million in total credit provisions and impairments during the second quarter of 2014 taking the total credit provisions and impairments taken by the group, including write-offs, since 2008 to Dh5.45 billion. We have further increased our collective provisions by Dh112.9 million in Q2 2014 and have brought our ratio to total customer risk weighted assets to 1.8 per cent, which is well above the Central Bank minimum guidelines of 1.5 per cent,” Al Mahmoud said.
During the second quarter of the year, the bank received approval by the Central Bank of the UAE to acquire the retail business of Barclays Bank in the UAE.
“Adib and Barclays are now working together to ensure a seamless transition for customers and all the staff who have accepted our offer of ongoing employment, which we anticipate completing well before year-end,” Al Mahmoud said.
