The net impairment charge for the first nine months of the year increased by 62% to Dh571 million. Image Credit: Supplied

Dubai: Abu Dhabi Islamic Bank reported a 53 per cent increase the first nine months of 2023 net profit at Dh3.75 billion, the bank said on Wednesday.

Revenue during the same period was up 48 per cent at Dh6.7 billion, while earnings per share climbed 49 per cent to Dh0.91.

“ADIB’s strong market position and digital drive has allowed us to grow our market share by attracting approximately 157,000 new customers to ADIB in the first nine months of 2023 emphasizing the strength of our brand,” said chairman Jawaan Awaidah Al Khaili.

Our ability to deliver strong business momentum is the result of our solid capital position, diversification of our revenue streams with double digit growth in both our funded and non-funded income

- Jawaan Awaidah Al Khaili

The bank’s funded income grew by 61 per cent to Dh4.5 billion vs Dh2.8 billion in the corresponding period of last year, driven by higher volumes and better margins. Non-funded income grew by 28 per cent to reach Dh2.2 billion in 9M 2023 versus Dh1.7 billion in the corresponding period of last year, driven by 24 per cent growth in fees and commissions.

“We have achieved a significant milestone towards Environmental, Social, and Governance (ESG) excellence with the launch of a comprehensive ESG strategy, designed to strengthen our sustainable banking agenda for the next three years,” said Nasser Abdulla Al Awadhi, Group CEO.

We ended the quarter with a CET1 ratio of 13.36%, as we actively managed our RWA to improve the returns we generate for our shareholders.

- Nasser Abdulla Al Awadhi

Impairments grew 62 per cent to Dh571 million for the first nine months of 2023. The provision coverage of non-performing financing (including collaterals) improved by 9.0 percentage points to 131.4 per cent.

Total assets increased 25 per cent to reach Dh184.1 billion, driven mainly by a growth in net financing, growth in cash and balances with central bank, and growth of the investment’s portfolio. This was funded by sizeable deposit inflows.

Customer deposits rose 28 per cent at Dh152 billion versus Dh138 billion in 9M 2023, driven mainly by 13 per cent growth in current and savings accounts (CASA).

The bank added approximately 157,000 new customers in the first nine months of this year.

“In the first nine months of 2023, ADIB was able to sustain the strong business and financial momentum while maintaining a strong balance sheet with healthy liquidity, asset quality and capital ratios, thereby laying solid foundations for future growth,” said Mohamed Abdelbary, Group Chief Financial Officer (GCFO).