Abu Dhabi: Abu Dhabi Islamic Bank (Adib) Group posted a 20.4 per cent increase in net profit to Dh409.5 million in the first quarter of 2014, compared to Dh340.1 million in the first quarter of last year. The financial performance was supported by strong growth in customer financing and deposits.
Net customer financing grew 18.1 per cent during the first three months of this year to Dh63.8 billion, from Dh54 billion at the end of the first quarter of 2013. Customer deposits grew 21.4 per cent to Dh77 billion from Dh63.4 billion at the end of the third quarter of 2013.
Credit provisions and impairments for the first quarter of 2014 increased by 16.7 per cent to Dh216.4 million compared to Dh185.5 million in the first quarter of last year.
“Quarterly performance reflects the sustainable strength of our core banking business in that it did not rely on reducing provisioning and impairment levels as we continued our conservative approach in managing our legacy remedial portfolio. In this regard we added a further Dh216.4 million in total credit provisions and impairments during the first quarter of 2014 taking the total credit provisions and impairments taken by the Group, including write-offs, since 2008 to Dh5.27 billion,” said Tirad Al Mahmoud, CEO of Adib.
Group net revenues for the first quarter this year increased by 16.8 per cent to Dh1.07 billion as total assets were up 16.4 per cent to Dh103.8 billion in the same period compared to the first quarter of 2013.
The bank’s capital adequacy ratio was at 15.71 per cent at the end of the first quarter while it remained highly liquid with advances to stable funds ratio of 79.6 per cent at the end of the third quarter and a customer financing to deposits ratio of 82.9 per cent during the same period.
Adib, which has a strong retail banking presence in country with 79 retail branches and 602 ATMs, recently signed an agreement to acquire the retail banking business of Barclays Bank in UAE.
“It is anticipated that the transaction will result in 110,000 customers joining Adib and thereby take our total active affluent base to over 700,000. Our selection as the successful party in a competitive process reinforces Adib’s stature and one of the leading retail banking operations in the UAE,” Mahmoud said.
