ABU DHABI: Abu Dhabi Islamic Bank reported a growth of 61 percent in net profit in the first half of 2023 to AED 2.3 billion from AED 1.4 billion in H1'22, according to the bank's H1'23 financial results released today. Net profit for Q2'23 reached AED 1.2 billion with 68 percent growth versus Q2'22.
Revenue in H1'23 improved by 50 percent reaching AED 4.3 billion compared to AED 2.8 billion last year due to excellent income diversification mix and strong growth across all business segments and products. Funded income grew by 75 percent to AED 2.9 billion versus AED 1.7 billion in the corresponding period of last year, driven by higher volumes and better margins, while non-funded income grew by 14 percent to reach AED 1.3 billion versus AED 1.2 billion in the corresponding period of last year driven by 15 percent growth in fees and commissions.
The bank's cost to income ratio was managed down with an improvement of 7.0 percentage points to 33.9 percent versus 40.9 percent in the corresponding period last year. As for total assets, they increased 28 percent settling at AED 182 billion, driven by 18 percent growth in gross financing and 22 percent growth in investments. Customer deposits rose 31 percent to reach AED 150 billion versus AED 115 billion in H1'22 driven.
“ADIB reported a record performance in the first half of 2023, delivering net profit of AED 2.3 billion, record revenue of AED 4.3 billion, which equates to an average return on equity of 25 percent reflecting the success of the Group’s diversified business model and a healthy regional economy. 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,” ADIB Chairman Jawaan Awaidah Al Khaili said. “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."
Nasser Abdulla Al Awadhi, ADIB's Group Chief Executive Officer, commented, "ADIB has delivered another strong set of results in the first half of 2023 with net profit up 61 percent year-on-year driven by 50 percent growth in revenues on the back of increased transaction volumes and improved margins led by an efficient funding base and higher yields. Both our Retail and Corporate Businesses have performed well with high quality income growth and double-digit returns.
“The momentum across the Group allows us to maintain a robust capital position and deliver attractive high returns to shareholders."