Top investor EIIC boosts stake in Abu Dhabi Islamic Bank
ABU DHABI, May 6, 2023
Emirates International Investment Company (EIIC) said it has acquired a 7.6% stake in Abu Dhabi Islamic Bank (ADIB) from Mubadala Investment Company (Mubadala).
The transaction has increased EIIC's total shareholding in ADIB to 47%, reflecting the company's strong confidence in the prospects for the long-term growth of the UAE's second-largest Islamic lender by assets.
A strategic investment arm of Abu Dhabi-based National Holding, EIIC has a diverse range of interests, spanning multiple sectors, including banking, asset management, real estate, hospitality, fintech, as well as food and agriculture.
As a global investor, the acquisition of the stake in ADIB is in line with Mubadala's strategy to create long-term value by optimising a global portfolio of investments across various sectors.
Mubadala remains committed to the UAE banking sector as one of the largest investors in the industry.
In Q1 2023, ADIB reported a growth in net profit of 54% to reach AED1.1 billion. The bank also reported record revenues of AED2 billion ($544 million) for the same period, up 45% year-on-year.
This was driven by an 81% growth in funded income to AED1.4 billion, derived from growth in customer financing and higher margins. ADIB also delivered a record return on equity of 23.4%.
The shariah-compliant bank continues to attract customers, welcoming 46,000 new customers in the first three months of 2023 alone.
The acquisition of a significant stake in ADIB by EIIC is a clear indication of the company's confidence in the growth prospects of the UAE's banking sector.
It will likely benefit both companies, enabling ADIB to further expand its operations and increase profitability, while providing EIIC with a stable and profitable investment.-TradeArabia News Service
