ADIB achieves 30% growth in profits in H1-2022
Abu Dhabi Islamic Bank has announced that it achieved a 30% growth on an annual basis in its net profits, which amounted to $380 million during the first half of 2022, compared with $300 million during the corresponding period in 2021, with an improvement in the return on Shareholders’ equity increased by 3.7 percentage points to 17.3%.
These results were driven by strong revenue growth, continued improvement of the cost base, and a reduction in provisions for financing and investment losses.
The bank’s revenues in H1 of 2022 recorded a growth of 7% to reach $770 million, compared with $720 million in the first half of last year, as a result of the increase in income from non-financing sources by 11% on an annual basis to reach $320 million, driven by the increase in fees and commissions. increased by 26%, and income from financing increased by 5% to reach $450 million thanks to the growth of customer financing.
Total assets increased by 9% year-on-year to reach $38.66 billion, as a result of the growth of total financing by 10%, and the growth of the investment portfolio by 30%. Customer deposits recorded a growth of 10% on an annual basis to reach $31.31 billion in parallel with the growth of current and savings accounts deposits.
The bank maintained a strong capital position; The adequacy ratio of the first tier of shareholders’ equity was 12.8% and the total capital adequacy ratio was 18%. The bank’s liquidity also stabilized at healthy levels, well above minimum regulatory requirements, with an improvement in the stable fund ratio of 85.1% and eligible liquid assets by 17.4%.
Customer Financing Up
Total customer financing increased by 10% on an annual basis to $26.46 billion, driven by the growth of corporate finance by 16% from government agencies, public sector companies, companies and financial institutions, while retail financing portfolios recorded a growth of 8%.
The bank’s investment portfolio increased by 30% during the first half of 2022 to reach $5.06 billion and the total value of non-producing assets reached $2.23 billion during the first half of 2022 compared with $2.12 billion during the same period in 2021, with an improvement in the rise in the proportion of non-producing assets. Produced to 8.4% compared to 8.8% during the period ending on 30 June 2021.
The bank maintained sound levels of liquidity, with an improvement in the rate of stable funds amounting to 85.1% compared to 83.1% in the first half of 2021, while the percentage of Eligible liquid assets increased to 17.4% during the period ended June 30, 2022, compared to 20.5% on June 30, 2021.
Joaan Owaidah Suhail al Khaili, Chairman of ADIB Group, said: “The bank achieved a strong growth of 30% in its net profits on an annual basis during the first half of 2022 as a result of the significant increase in its assets, revenues and total financing. This outstanding performance reflects the strong momentum recorded by the bank’s core business within the framework of its 2025 growth strategy, along with an improved macroeconomic outlook.”
“The significant progress made by the bank in implementing strategic growth initiatives and its investments in financial products, services and technologies contributed to achieving the desired results. The return on equity increased by 3.7 percentage points to 17.3%, confirming that we are on the right track towards achieving our goal of increasing this ratio to 20%,” he added.