Monday, May 14, 2012
Gulf News
Abu Dhabi Abu Dhabi Islamic Bank (ADIB) posted a net profit of Dh307.3 million for the first quarter of 2012.
The bank reported strong growth in both retail and wholesale banking business. As a result, customer numbers increased by 9 per cent. Customer deposits and assets grew by 4.3 per cent and 1.6 per cent, respectively while, total non-performing assets declined by 4.8 per cent in the quarter.
ADIB improved its liq-uidity position as the advances to stable funds ratio improved to 81.7 per cent as of March 31, while the continued focus on managing the cost of funds saw current and savings account balances reach Dh27.9 billion, an increase of 23 per cent over the first quarter of 2011.
The bank said it maintained its conservative approach to non-performing asset recognition and provisioning in line with both best practice and UAE Central Bank guidelines, ensuring a healthy pre-collateral non-performing asset coverage ratio of 70.2 per cent.
In addition, the group continued the quarterly impairment review of the portfolio held by the real estate subsidiary, Burooj Properties, and as a result made further provisions in this regard.
Despite a decline in total non-performing assets of 4.8 per cent in the quarter, the bank took an additional Dh156.8 million in credit provisions, increasing total credit provisions to over Dh3.1 billion with specific credit provisions at Dh2.36 billion and collective provisions at Dh798 million. Total credit provisions now amount to 6 per cent of gross customer financing assets and represent a pre-collateral non-performing coverage ratio of 70.2 per cent. In addition, a further Dh29.3 million in impairments were taken against the real estate subsidiary’s portfolio in the first quarter, bringing total impairments related to this business to Dh385 million over the past three years.
ADIB maintained a strong liquidity position with customer deposits of Dh 57.6 billion, Central Bank placements of Dh4.9 billion and a net interbank position of Dh8.1 billion. Net customer financing grew to Dh49.6 billion (Dh48.1 billion as of March 31, 2011) and the bank ended the quarter with a customer financing to deposits ratio of 86.2 per cent and an advances to stable funds ratio of 81.7 per cent.
Staff Report
Gulf News 2012. All rights reserved.
