Even though ADIB will maintain a prudent approach
ADIB head office Image Credit: Ahmed Kutty/Gulf News

Dubai: Abu Dhabi Islamic Bank (ADIB) reported on Sunday a 5.2 per cent increase in its net profit for the third quarter of 2019 as revenues rose.

Profits for the quarter reached Dh620 million, up from the Dh589 million recorded in the same period last year. This brought profits in the first nine months of 2019 to Dh1.85 billion, up 5.6 per cent year-on-year.

The increase came on the back of higher income from financing, higher investment income, and higher fee income — all of which drove revenues 5.5 per cent higher in the third quarter to Dh1.5 billion.

Investment income alone jumped by 59 per cent in the quarter to Dh195 million, while fees and commission income grew 5.1 per cent to Dh280 million. Revenues for the period between January and September was also higher, by 5.7 per cent, reaching Dh4.39 billion.

Mazin Manna, chief executive officer of ADIB, said the bank benefited from lower costs of funds, helping the balance sheet. He said that the bank’s strong liquidity is fully expected to be able to support ADIB’s growth plans.

“Our growth in revenues has been complemented by our discipline in managing costs and risk, which saw the cost-to-income ratio decrease by 1.6 per cent year-on-year,” Manna said in a statement.

He added that the bank also implemented various “savings initiatives” to control operating expenses. “However, the financial benefits of this programme have been partially offset by investments in new digital and strategic initiatives that will help attract new customers and support the future growth of the bank.”

In terms of loans and deposits, both inched up by less than 2 per cent year-on-year. Customer financing reached Dh79.2 billion, up 1 per cent compared to the end of September 2018, while deposits rose by 1.9 per cent to Dh100.4 billion.