The Greatest Quarterly Net Profit Was Reported By Abu Dhabi Islamic Bank For Q3-22

Abu Dhabi Islamic Bank, UAE’s biggest Sharia-compliant lender, reported its highest quarterly net profit. The profit was more than Dh1 billion ($274.9 million) in the third quarter of 2022.

This profit was achieved by growth in all sectors of the business. The bank recorded a nearly 105 percent rise in net profit compared with the previous year, where it earned Dh 493 million in net profit. This was mentioned in an ADIB statement to Abu Dhabi Securities Exchange, where its shares trade.

The bank achieved growth from Dh1.6 billion to Dh2.4 billion in the first nine months of this year, which amounts to an annual growth of 53 percent in net profit. Revenue for the first nine-month period jumped 10 percent to more than Dh4.5 billion compared to Dh4 billion last year.

Reporting The Greatest Quarterly Net Profit For Q3-22 Is Abu Dhabi Islamic Bank

The bank said that the growth was driven by a 22 percent increase in fees and commissions and a 10 percent growth in funded income to Dh 2.8 billion, achieved from growth in customer financing and higher rates.

Total assets increased by 10 percent to reach Dh 147 billion, and it is driven by 16 percent growth in gross financing and 42 percent in investments. There was also an increase in customer deposits by 11 percent year-on-year to Dh 119 billion from strong Current and Savings Accounts.

For the first nine months, the cost-to-income ratio was managed down to cross the 40% mark with an improvement of 4.6 percentage points to 37.6%. This result was aided by higher revenues and cost initiatives driven by the ongoing investment in digital initiatives that brought expenses down by 2 percent year-on-year to Dh 1,699 million.

For the first nine months of 2022 impairments declined 53% year-on-year to Dh 352 million, which is a reflection of overall improvement in economic conditions. This reduction was achieved while improving the provision coverage of non-performing financing by 4.1 percentage points to 122.4 percent.   

Chairman of ADIB, Jawaan Awaidah Al Khaili, said that ADIB is pleased to report its best quarterly results ever. ADIB was able to cross the Dh 1 billion mark in net profit for a quarter underpinned by strong business momentum.

He added that ADIB’s initiative to diversify income and expand into new segments while managing asset quality and improving the bank’s costs served well to deliver a record ROE of 19.6 percent. He expressed his happiness in being recognized as the safest Islamic bank globally.

Furthermore, he said that it is a testament to their solid fundamentals and financial strengths. The bank’s capital ratios and liquidity metrics are robust and operate in a healthy economic environment backed by a strong and supportive government.

The strong results, along with the bank’s positive outlook for the local economy, are projected to accelerate investments supporting the next stage of growth. 

Group Chief Executive Officer, Nasser Al Awadhi, commented that the record results for the quarter once again attest to the strength of the bank’s business and the meaningful progress they are making in transforming the bank’s business and capturing new opportunities.

He added that their transformed business, nimble execution of strategic priorities, and balance sheet strengths had put the bank in a good position to deliver one of the highest returns on equity in the market at 19.6 percent.

This demonstrates the bank’s leading origination capabilities and the continued focus to grow our market share through specialized offerings and innovative solutions. The bank is now more confident to make similar achievements in the coming quarters.