Abu Dhabi Islamic Bank’s net profit grew 30 per cent in the first half of 2022 to Dh1.4 billion from Dh1.1 billion in the year-ago period on solid top-line growth, continued optimisation of the cost base and lower impairments, it said on Wednesday.
Revenue for the same period improved 7 per cent to Dh2.838 billion compared to Dh2.644 billion last year. This arose from an 11 per cent year-on-year increase in non-funded income to Dh1.169 billion driven by 26 per cent increase in fees and commissions and 5 per cent growth in funded income to Dh1.669 billion, achieved from the growth in customer financing.
Cost discipline was maintained amid ongoing investment in digital initiatives with operating expenses declining 0.2 per cent year-on-year to Dh1.160 billion and the cost-to-income ratio improved 3.1 percentage points to 40.9 per cent.
Customer deposits rose 10 per cent year-on-year to Dh115 billion from strong current and savings accounts (CASA).
“ADIB delivered robust year-on-year net profit growth of 30 per cent in the first half of 2022 underscored by positive increases in our assets, revenues, and gross financing. Our performance reflects solid momentum across our core businesses under our 2025 growth strategy, and improved macroeconomic conditions. The tangible progress ADIB has made against our strategic growth initiatives and investments in products, services, and technology is bearing fruit, with return on equity increasing 3.7 percentage points to 17.3 per cent, well on track towards our ambition of 20 per cent by 2025,” said ADIB Chairman Jawaan Awaidah Al Khail.
Nasser Al Awadhi, Group CEO, said: “Positive performance was achieved across our businesses, with both our retail and wholesale divisions achieving strong top-line growth. I am particularly pleased with our ability to generate robust fee income, including the supporting the healthy stream of IPOs, which led to 7 per cent year-on-year revenue growth for the group.”
