Dubai: Abu Dhabi Islamic Bank (ADIB) announced a 30 per cent increase in net profit after tax for the first-half of this year, reaching Dh3.03 billion compared to Dh2.33 billion in H1 2023. The bank's performance was driven by strong balance sheet growth, improved net profit margins, and increased fee-based income, it said in a statement.
Net profit before tax rose to Dh3.42 billion, a 40 per cent increase from H1 2023. Revenue for H1 2024 grew by 25 per cent to Dh5.35 billion, up from Dh4.26 billion in the same period last year. This growth was supported by strong business volumes across all segments and products, along with continued strength in fee-based businesses.
Jawaan Awaidah Al Khaili, Chairman of ADIB, said, “We achieved another set of record results Our second-quarter and first-half earnings for 2024 reached new highs, with notable improvement across all metrics and total asset base crossing the Dh200 billion threshold for the first time.”
Thw earnings growth was complimented by a 25 per cent improvement in revenue during H1 2024, rising to Dh5.35 billion compared to Dh4.26 billion last year for the same period, which the lender in turn attributed to "strong business volumes across all business segments and products, and continued strength in fee-based businesses."
Additionally, higher profits during the first half of the year were due to better margins, which reached 4.6 percent, widening 19 basis points year-on-year, reflecting "higher rates and discipline on both asset and liability pricing." With the cost-to-income ratio improving by 5.3 percentage points to 28.6 per cent versus 33.9 per cent in the previous year, earnings in the period got the boost they needed.
Al Khaili added, “The swift actions we are taking to deliver on our strategic priorities, serving as a trusted partner and putting our customers at the center of everything we do, have successfully deepened our relationships with our customers and expanded our customer base across all our businesses, adding 97,500 new customers in the first half of 2024, bringing the total number of customers to 1.359 million.”
