Abu Dhabi Islamic Bank’s net profits for the full year 2023 and last three months of the year climbed to historic highs on the back of strong revenues.

The lender’s total net earnings for 2023 soared by 45% year-on-year to a “new historical record” of AED5.25 billion ($1.4 billion), compared to AED3.62 billion in 2022, the bank said in a filing on the Abu Dhabi Securities Exchange (ADX).

Net profit for the last three months of the year grew by 29% year-on-year to reach a new high of AED1.5 billion.

With the positive results, the bank is recommending a higher dividend payout of 71 fils per share, equivalent to 49% of net profit.

“ADIB produced outstanding results in 2023 exceeding the AED5 billion milestone in net profit,” said Jawaan Awaidah Al Khaili, ADIB Chairman.

“The substantial increase in profitability and the strength of our capital position has allowed us to recommend an increase in our dividend payout.”

Revenue, other income

Revenue for the full year climbed by 36% to AED9.3 billion compared to AED6.8 billion in 2022, driven by strong growth across all business segments and products.

Funded income increased by 47% to AED6.1 billion, compared to AED4.2 billion in the previous year, driven by higher volumes and better margins.

Non-funded income reached AED3.2 billion, up by 18% from the AED2.7 billion recorded a year earlier. This was driven by the 18% increase in fees and commissions.

Cost to income ratio stood at 32.9%, an improvement from 34.9% in the previous year. This was driven largely by higher income and improved productivity.

The bank’s shareholders are set to take up at the annual general meeting the proposal to increase the dividend.

(Writing by Cleofe Maceda; editing by Seban Scaria)
(seban.scaria@lseg.com)