ADIB in Dubai.
Total assets increased 24 per cent to reach Dh172 billion, the bank said. Image Credit: Ahmed Ramzan/Gulf News

Abu Dhabi-based lender ADIB reported a 54 per cent growth in net profit in Q1 2023 at Dh1.1 billion compared to Dh715 million in the same period last year, the bank said on Wednesday.

Revenue for the same period clocked Dh2 billion, up 45 per cent, compared to the year-ago figures of Dh1.4 billion. This was driven by an 81 per cent growth in funded income to Dh1.4 billion, achieved from the growth in customer financing and higher margins.

Total assets increased 24 per cent to reach Dh172 billion, driven by 19 per cent growth in gross financing and 22 per cent growth in investments, the bank said.

“The UAE economy saw a good start in 2023 supported by higher oil prices and continuation of the diversification strategy. Capitalising on the encouraging economic environment, ADIB has delivered a solid performance in the first quarter of 2023 with net profit increasing by 54 per cent to Dh1.1 billion on the back of excellent progress on our growth strategy and transformation initiatives, in line with our long term plan to deliver sustainable value to all our stakeholders. The record return on equity of 23.4 per cent reflects the benefit of higher income as well as significant structural gains from our strategic initiatives,” said Chairman Jawaan Awaidah Al Khaili.

“We continued to attract new customers to the bank welcoming 46,000 new customers in Q1 2023 and growing our market share. Our efforts have led us to be recognised as the Best Bank in the UAE by Global Finance, a testament to our robust financial performance and pioneering approach to innovation in digital banking,” he added.

Cost to income ratio was managed down with an improvement of 5.3 percentage points to 35.7 per cent. This was mainly driven by growth in income and enhanced productivity. Impairments grew 29 per cent to Dh146 million. The provision coverage of non-performing financing (including collaterals) improved by 7.6 percentage points to 128.7 per cent.

“All of our business lines continued to generate solid growth this quarter. In the retail banking group, consumer spending remained healthy with card sales up 45 per cent and 11 per cent growth in customer financing. In the wholesale bank, we were able to grow financing by 15 per cent as a result of strong momentum in deal execution. This growth was driven by demand from existing large corporates as well as new to bank customers,” said Group CEO Nasser Al Awadhi.