Sunday 25 August 2019

Abu Dhabi Islamic Bank net profit up 8.7pc to $680m

ABU DHABI, February 4, 2019

Abu Dhabi Islamic Bank (ADIB) has delivered a strong set of results for 2018 with net profit growing 8.7 per cent to Dh2.5 billion ($680.61 million).
The net profit for the fourth quarter of 2018 rose 23.2 per cent compared to the same period in 2017 to Dh748.3 million, driven by growth in customer financing and an improvement in provisioning, said a statement.
The performance was also supported by higher fee income, controlled operating expenses and improved funding costs. The bank has built a healthy balance sheet following a strengthening of capital through a rights issue and Tier-1 perpetual sukuk issuance, coupled with strong liquidity and good asset quality, it said.
The board of directors has recommended a cash dividend of 27.38 per cent for 2018, which represents 39.76 per cent of 2018 net profit.
Khamis Buharoon, ADIB vice chairman and acting CEO, said: "Despite increased competition within the UAE banking industry, 2018 has marked another successful year for ADIB in which we have achieved solid revenue and net profit growth. During the year we have enhanced our digital banking platforms and award-winning product offering, enabling us to attract over 60,000 new customers and cross the one million customer milestone. This has enhanced income sourced from customer financing, which now represents over two-thirds of total revenues."
ADIB welcomed its one millionth customer in 2018, nearly double the number it had five years ago. A focus on customer service, combined with considerable investment in the bank’s digital platforms and the development of industry-leading products, has led to a year-on-year increase of 6 per cent in active customers to 1,044,247.
ADIB successfully raised Dh1 billion through a rights issue in October 2018, supporting the bank’s growth strategy while boosting its core capital. The rights issue generated strong interest across a highly diversified local investor base and was approximately 5 times oversubscribed.


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