Dubai: Abu Dhabi Islamic Bank (ADIB) Group’s net profit for 2014 increased by 20.7 per cent to Dh1.75 million compared to Dh1.45 billion in 2013. The bank’s net revenues for 2014 increased by 16.6 per cent to Dh4.58 billion compared to Dh3.93 billion in the same time period.

While the group net profit for the fourth quarter of 2014 increased by 19.3 per cent to Dh409.6 million compared to Dh343.3 million in the fourth quarter of 2013, net revenues during the same period increased by 20.1 per cent to Dh1.25 billion.

“All customer facing units — retail banking; private banking; community banking; and wholesale banking backed by our treasury — continued to grow market share. As a consequence we saw the bank’s customer financing assets increase by 18.2 per cent to Dh73 billion, while customer deposits increased by 12.3 per cent to Dh84.8 billion over the same period, resulting in ADIB remaining one of the most liquid banks in the UAE,” said Tirad Al Mahmoud, CEO of ADIB.

Total assets as of end December 2014 were Dh111.9 billion, representing an increase of 8.5 per cent from Dh103.2 billion at the year-end 2013.

Total non-performing accounts as a percentage of gross customer financing improved to 4.4 per cent compared to 8.3 per cent in the previous year, while total credit provisions and impairments decreased by 2.9 per cent to Dh757.8 million during the year, which resulted in a pre-collateral non-performing coverage ratio of 95.6 per cent of the impaired portfolio.

The bank continued to maintain a conservative policy of non-performing asset recognition by taking additional Dh625.6 million in total credit provisions, to ensure a healthy pre-collateral non-performing asset coverage ratio of 83.2 per cent of the total non-performing portfolio, net of write-offs. Provisions and impairments for the fourth quarter of 2014 decreased by 19.3 per cent to Dh178.7 million compared to Dh221.5 million for the fourth quarter of 2013.

ADIB’s cost to income ratio for 2014 increased to 45.3 per cent compared to 43.3 per cent in 2013, largely driven by upfront costs associated with its acquisition of Barclay’s retail business, investment in distribution network, alternative channels; rolling-out the Arablink foreign exchange broking joint venture in the UAE; and launching a new merchant-acquiring joint venture, ADIMAC.

The bank’s capital adequacy ratio at the year-end was 14.36 per cent. ADIB reported strong liquidity with advances to stable funds ratio of 86.5 per cent for 2014, compared to 77.9 per cent at the close of 2013 and a customer financing to deposits ratio of 86.1 per cent in 2014 compared to 81.8 during the same period in the previous year.

The bank said it will take the necessary actions — including retaining more earnings — to be able to support its continued growth while at the same time improving its capital ratios above the levels expected by regulators, rating agencies and investors.

Considering the full year performance and need to shore up capital base, the board of directors has recommended the distribution of 23.34 per cent cash dividends for 2014. The cash dividends represent 40 per cent of full year net profits for 2014.