Dubai: Abu Dhabi Islamic Bank reported a 61 per cent increase in half-yearly net profit until June at Dh2.326 billion, the bank said on Thursday.
Revenue during the same period was up 50 per cent at Dh4.3 billion, while earnings per share climbed 57 per cent to Dh0.57.
“Our ability to deliver strong business momentum is the result of our solid capital position, prudent risk management, diversified business lines and nimble execution of our strategy underpinned by an on-going digital and innovation strategy,” said chairman Jawaan Awaidah Al Khaili.
“We have benefited from strong deposit inflows and grew our market share by attracting approximately 96,000 new customers to ADIB in the first half of 2023 emphasising the strength of our brand,” he added.
The bank’s funded income grew by 75 per cent to Dh2.9 billion vs Dh1.7 billion in the corresponding period of last year, driven by higher volumes and better margins. Non-funded income grew by 14 per cent to reach Dh1.3 billion in H1 2023 versus Dh1.2 billion in the corresponding period of last year, driven by 15 per cent growth in fees and commissions.
Impairments grew 62 per cent to Dh369 million for the first half of 2023. The provision coverage of non-performing financing (including collaterals) improved by 4.7 percentage points to 128.4 per cent.
Total assets increased 28 per cent to reach Dh182 billion, driven by 18 per cent growth in gross financing and 22 per cent growth in investments.
Customer deposits rose 31 per cent at Dh150 billion versus Dh115 billion in H1 2022, driven mainly by 14 per cent growth in current and savings accounts (CASA).
The bank added approximately 96,000 new customers in the first half this year.
“Our business pipelines are healthy and asset quality is resilient. The record return on equity of 25 per cent demonstrates the significant improvements we have made in our operations and business including investing in our digital transformation,” said Group CEO Nasser Abdulla Al Awadhi.
