54% growth in the profits of “Abu Dhabi Islamic” to 1.1 billion dirhams during the first quarter

Abu Dhabi, April 26 / Abu Dhabi Islamic Bank announced a 54% growth in net profit in the first quarter of 2023 to reach 1.1 billion dirhams, compared to 715 million dirhams in the first quarter of 2022, indicating a steady trend of strong growth and profitability.
The bank said, in a statement today, that revenues improved by 45% to 2 billion dirhams in the first quarter of 2023, compared to 1.4 billion dirhams compared to the same period last year, and this is attributed to an 81% increase in income from financing sources to 1.4 billion dirhams. One billion dirhams, as a result of the growth in customer financing and the increase in profit margins.
The cost to income ratio reached 35.7%, with an improvement of 5.3 percentage points, as a result of the improvement in revenues and the enhancement of productivity. Provisions for financing and investment losses increased by 29% to 146 million dirhams for the first quarter of 2023. This coincided with an improvement in coverage of non-producing assets ( including guarantees) by 7.6 percentage points to 128.7%.
Total assets increased by 24% to reach 172 billion dirhams, driven by a growth of 19% in total financing and 22% in investments, while customer deposits increased by 28% to reach 142 billion dirhams, mainly driven by a growth of 15% in current accounts and savings accounts. Despite the high profit rate environment.
Abu Dhabi Islamic maintained a strong capital position, with the first-tier adequacy ratio of shareholders’ equity reaching 12.55% and the total capital adequacy ratio at 17.54%. 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 80.3% and the eligible liquid assets by 19.6%.
His Excellency Joaan Awaida Suhail Al Khaili, Chairman of the Board of Directors of Abu Dhabi Islamic Bank, said that the bank achieved a strong performance in the first quarter, benefiting from the encouraging economic environment, as it achieved an increase in its net profit by 54% on the back of the progress made by the growth strategy and transformation initiatives, and the bank’s long plan. Term to deliver sustainable value to all stakeholders.
He added that the bank succeeded in continuing to attract new customers, as we welcomed about 46 thousand new customers in the first quarter of the year 2023, which strengthened our market share.
For his part, Nasser Al-Awadi, Group Chief Executive Officer, said: “We continued to record a strong performance in growth and profitability, with a successful start in the first quarter of 2023, and this positive performance reflects our commitment to providing the best products and services, and providing long-term value to our shareholders.”
He added that the bank continued, at the international level, to strengthen its presence in the markets in which it is present, including Egypt, which represents an important strategic market for the group, as we continued to focus on taking advantage of the opportunities there.