Dubai: Abu Dhabi Islamic Bank (ADIB) has reported a net profit of Dh1.93 billion for 2015, up 10.5 per cent compared to 2014.
The bank’s board of directors has recommended dividend distribution of the equivalent of 39.8 per cent of full year net profits. The dividend is proposed to be in the form of cash dividends equal to 24.27 per cent of the par value of issued shares.
The bank’s total assets increased by 5.8 per cent to Dh118.4 billion. Customer deposits increased 12 per cent to Dh94.9 billion, while net customer financing grew by 7.4 per cent to Dh78.4 billion. Despite a dampened credit environment, total non-performing accounts as a percentage of gross customer financing declined to 3.9 per cent as at year-end 2015, from 4.4 per cent a year earlier.
Credit provisions and impairments for 2015 increased by 8.2 per cent year on year to Dh820 million. The group continued to maintain conservative provisions, and took an additional Dh770.6 million in total credit provisions to improve non-performing coverage ratio to 95.5 per cent of the total non-performing portfolio.
“Despite a more challenging operating environment in the UAE, we have seen continued growth in our customer numbers, and the strength of our balance sheet and our liquidity position will enable us to continue investing in our product capabilities and support the financial needs of our clients,” said Tirad Al Mahmoud, Chief Executive Officer of ADIB.
ADIB maintained strong liquidity position while simultaneously continuing to manage its cost of funding. The group ended the year with a steady customer financing-to-deposits ratio of 82.6 per cent and an advances-to-stable funds ratio of 84.6 per cent, which remains significantly better than the regulatory threshold of 100 per cent.
Capital adequacy ratio
Total Equity (including Tier 1 capital instruments), after the successful completion of the Dh504 million common equity right issue in the third quarter of 2015, was Dh15.1 billion as at 31 December 2015. This represents an increase of 10.1 per cent. ADIB’s capital adequacy ratio now stands at 15.14 per cent and Tier 1 capital ratio at 14.59 per cent.
The Group has continued to invest in infrastructure to improve the banking experience for its customers by delivering best in class banking services. Through its investment in digital technology, the bank is setting up complementary business units such as merchant acquiring and upgrading its core banking capabilities to ensure the Group operates in a stable and secure manner. As part of its commitment to be a leader
“2015 has been a year of investment for ADIB. We remain focused on our strategy of delivering the products and banking experience that our customers want and we continue to invest heavily in digital technology, new banking services and infrastructure to deliver on those needs,” said Al Mahmoud.
