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Abu Dhabi, January 30 / Abu Dhabi Islamic Bank announced achieving a record performance in 2022, with net profits reaching 3.62 billion dirhams, a growth of 55% year on year, and an increase in the dividend distribution ratio to 49 fils per share, equivalent to 49% of net profits.
The bank recorded a net profit in the fourth quarter of 2022 of 1.2 billion dirhams, compared to 728 million dirhams in the fourth quarter of 2021, which represents a growth of 60% compared to the same period last year.
Abu Dhabi Islamic Bank’s revenues in 2022 improved by 23% to reach 6.835 billion dirhams, compared to 5.56 billion dirhams last year.
This is due to a 43% increase in fees and commissions, and a 24% growth in income from financing sources to 4.151 billion dirhams, as a result of the growth in customer financing and the increase in profit margins.
In a press release today, the bank indicated an improvement in the cost-to-income ratio to 34.9% for this year, with an improvement of 5.7 percentage points. This was achieved despite a slight increase in the cost by 6% on an annual basis, to reach 2.387 billion dirhams. This is a result of ongoing investments in strategic and digital initiatives.
Provisions for financing and investment losses decreased by 19% on an annual basis to 769 million dirhams for the year 2022, which reflects a general improvement in economic conditions..This decrease coincided with an improvement in coverage of non-producing assets (including guarantees) by 7.9 percentage points to reach 127.9%.
Total assets increased by 23% year-on-year to AED 169 billion, driven by a 22% growth in total financing and 42% in investments.
Customer deposits increased by 26% year-on-year to reach AED 138 billion, mainly driven by a 14% growth in current and savings accounts despite the high profit rate environment.
Abu Dhabi Islamic Bank maintained a strong capital position, with the first-tier adequacy ratio of shareholders’ equity reaching 12.08%, including the proposed dividends for the year 2022.
The bank’s cash liquidity also stabilized at healthy levels, exceeding the minimum regulatory requirements by a comfortable margin, with an improvement in the stable funding ratio amounting to 82.1% and the eligible liquid assets by 18.9%.
His Excellency Joaan Awaida Suhail Al Khaili, Chairman of the Board of Directors of the Bank, said: “In 2022 ADIB recorded unprecedented results, as we achieved a strong performance of AED 3.62 billion. This was mainly contributed to by the efforts of the work team and commitment to achieving excellence in services .. We have benefited from our initiatives to diversify sources of income and expand into new sectors to achieve a return on equity of 21.4%, which allowed the Board of Directors to recommend a dividend distribution of 49 fils per share, compared to 31 fils in 2021. We have also witnessed Fourth Quarter Strengthening our stake in Abu Dhabi Islamic Bank – Egypt Our additional investment in Egypt reflects our confidence in the future economic prospects of the Arab Republic of Egypt.
He added: “The efforts of the work team also contributed to the bank winning the Best Bank in the UAE award from the Financial Times, which is a testament to our strong financial performance and our pioneering innovative approach in the field of digital banking services. We are also proud of our firm commitment to adopting the principles of sustainability. Environmental, social and institutional governance is part of our strategic plan for the next five years, coinciding with the UAE’s declaration of the Year of Sustainability, where we see true integration of sustainability at the level of all our business. Our strong financial results and positive outlook on the local economy will motivate us to accelerate our investments to lay the foundations for the next phase of growth. We will continue to support the national economy and look forward to playing a more active role within the UAE’s sustainability agenda.”
For his part, Nasser Al-Awadi, Group Chief Executive Officer, said: “We succeeded in achieving a strong performance for Abu Dhabi Islamic Bank in the year 2022, as we recorded balanced growth at the level of all our business sectors..and we witnessed broad momentum on the income level in all our operational businesses as we continue to enhance our market share. This puts us well positioned to achieve one of the highest returns on equity in the market at 21.4%.
Al-Awadhi added: “This is due to the growth in financing customers by 22% during this year, including financing customers from individuals and companies, which resulted in a growth in income from financing sources by 24%. This proves our ability in the field of launching new services and products, and our focus Continuing to increase our market share through offers intended for customers and providing innovative solutions .. The positive trend of our business performance has continued to achieve a growth in fee income by 43%.
He continued: “In addition, we continue to maintain our disciplined approach aimed at enhancing cost efficiency, as the cost-to-income ratio improved by 5.7 percentage points, to reach 34.9%, for the first time in our history .. and we succeeded in achieving this despite the high cost Slightly down by 6% year-on-year to AED 2.387 billion, which reflects continued investments in strategic and digital initiatives..We have made good progress within our commitments to achieving the 2025 goals, both strategically and financially. In light of achieving these results and targets before 2025, we at ADIB will inform our shareholders and partners about our updated growth plans that are appropriate for the next stage of growth and how we will continue to build on our positive momentum.”
Al-Awadi said: “As for our future outlook, and in light of the uncertain global economic outlook due to inflation pressures, we are confident that our strong balance sheet and levels of
