ADIB achieved a record performance in 2024, with net profit before tax increasing by 26% Y-o-Y to AED 6.9bln

• The proposed cash dividend of 83 fils per share representing a total payout of AED 3.030 billion and equivalent to 50% of 2024 net profit
• Net Profit after tax grew 16% YoY to AED 6.1 billion

(1) subject to shareholders approval at the annual general meeting.

Net Profit

• 2024 full year net profit before tax was AED 6.9 billion, rising 26% year-over-year. The strong balance sheet growth, coupled with increased business momentum and diversified revenue growth, has fueled the bank's exceptional financial performance.
• Net profit after tax for 2024 was AED 6.1 billion, reflecting a 16% increase compared to the full year 2023.
• Q4 2024 net profit before tax reached AED 1.6 billion, up 7% YoY.

Revenues

• Revenue for 2024 improved by 14% to AED 10.6 billion compared to AED 9.3 billion last year. This growth was supported by strong increases in both income from financing activities and non-funding income. The strong business volumes across all segments and products, along with continued strength in fee-based businesses, played a significant role in this improvement.
• Funded income grew by 7% year-over-year to AED 6.6 billion in 2024, compared to AED 6.1 billion last year. This growth was driven by solid business volumes.
• Net Profit Margin (NPM) reached 4.35%.
• Non-funded income grew by 28% year-over-year to reach AED 4.1 billion in 2024, compared to AED 3.2 billion last year. This growth reflects continued strength in fee-generation revenues, which saw a 12% increase from various product sales, and a 39% growth in investment income. Non-funded income now contributes 38% to operating income, up from 34% in 2023, underlining the continued strategic focus on revenue diversification

Expenses

• Operating expenses for 2024 were AED 3.1 billion, reflecting a 3% year-over-year increase. This rise is attributed to ongoing investments in people, digital initiatives, and new technology.
• The cost to income ratio improved by 3.4 percentage points to 29.6% in 2024, compared to 32.9% in 2023.

Provisions and asset quality

• Impairments decreased by 18% to AED 620 million during 2024, translating to a cost of risk (CoR) of 53bps.
• The non-performing asset ratio improved to 4.0%, its lowest level since Q1 2017, due to active remediation of our legacy portfolio coupled with strong underwriting standards.
• The provision coverage ratio, including collaterals, improved by 17.9 percentage points to 157.4%. The provision coverage ratio (excluding collaterals) improved to 81.5% from 74.3% year-over-year.

Balance sheet

• Total assets increased by 17% year-over-year to reach AED 226 billion. This growth was driven by financing growth in both retail and corporate banking, as well as an expansion in the investment portfolio.
• Customer financing grew by 24% year-over-year, representing AED 28 billion increase in financing in 2024. This reflects market share gains across key segments and wholesale banking closing landmark deals.
• Customer deposits rose by 16% year-over-year to AED 183 billion, compared with AED 157 billion last year. This growth maintained a healthy funding mix, with a 9% year-over-year growth in Current and Savings Accounts (CASA), which now comprise 61% of total deposits.

Liquidity and capital

• ADIB maintained a robust capital position with a Common Equity Tier 1 ratio of 12.1% and a total Capital Adequacy Ratio of 16.2%.
• The bank's liquidity position was healthy and within regulatory requirements, with the advances to stable funding ratio at 81.0% and the eligible liquid asset ratio at 17.8%.
•  Total shareholders’ equity rose 11% year-over-year to AED 23 billion, led by growth in earnings.
• The return on equity (RoE) stood at 28% in 2024.

H.E Jawaan Awaidah Al Khaili, Chairman:

“In 2024, we continued to achieve significant milestones, setting new financial records with an ROE of 28%, advancing our digital transformation journey and accelerating our sustainability initiatives.” 

“In 2024, we continued to achieve significant milestones fueled by our commitment to providing innovative solutions that go beyond our customers’ needs. We achieved new financial records, made substantial progress in our digital transformation journey and accelerated our sustainability initiatives while leveraging our unique brand and reputation.  Our robust financial performance with a record net profit of AED 6.9 billion before tax showing a growth of 26% YoY driven by topline growth in revenue of 14%. This is a testament to the success of our business strategy and sets ADIB on the right path for future growth.

The record return on equity of 28% reflect the healthy and resilient local economy coupled with our focus on delivering transformational initiatives that align with the UAE's dynamic economic landscape which enabled us to capitalize on the growth opportunities and deliver exceptional value to our shareholders.

The substantial increase in our profitability and the strength of our capital position has allowed the Board to recommend a cash dividend per share of 83 fils for 2024 amounting to AED 3.030 billion, which is the highest payout since inception of ADIB.

ADIB’s strong market position has allowed us to grow our market share by attracting approximately 216,000 new customers to ADIB in 2024. Total asset reaching AED 226 billion supported by a growth in customer financing of AED 28 billion in 2024.

Our clear commitment to excellence has been recognized by many local and international organizations. We were named the Best Bank in the UAE for 2024 by Global Finance Magazine and maintained our notable ranking from last year as the Safest Islamic Bank Globally.

In 2024, we actively drove the sustainability agenda and led initiatives that significantly contributed to our ESG roadmap, including our commitment to reduce carbon emission as part of our Net Zero plan. A particular highlight of this year is ADIB receiving an upgrade to an “AA” ESG rating from MSCI, which reflects our continued commitment to enhancing our ESG practices and governance.

We believe this broad momentum sets up 2025 very well for ADIB. With the launch of 2035 Vision, we are putting into place a transformative roadmap that positions us at the forefront of our industry. It is a vision that will be fueled by technological advancements, an uncompromising focus on our customers, and a deep commitment to sustainability principles."

Mohamed Abdelbary, Group Chief Executive Officer (GCEO):

“ADIB continued to successfully execute its ambitious growth strategy against a positive economic backdrop in the UAE. The Bank delivered solid financial performance, achieving record highs in net profit and return on equity. This is testament to ADIB’s unique market position, our customer centric approach, underpinned by a solid balance sheet and prudent risk management.”

"In 2024, ADIB continued to successfully execute its ambitious growth strategy against a positive economic backdrop in the UAE, marked by robust consumer and business sentiment. The Bank delivered solid financial performance, achieving record highs in net profit and return on equity. This is testament to ADIB’s unique market position, our customer centric approach, underpinned by a solid balance sheet and prudent risk management, which position us well to be an important partner to our customers and the community.

Earnings were propelled by higher volumes in customers’ financing, which drove the funded income up by 7% compared to 2023. Non-funded income saw a notable rise of 28% compared to last year, bolstered by wealth management fees, card fees and customer financing related fees. Non-funded income represents 38% of total income, underlining the strategic focus on revenue diversification. This has been accompanied by significant discipline in our expenses as the cost to Income ratio improved to 29.6% from 32.9% last year.   

The balance sheet grew 17% year-over-year, driven by a record 24% year-on-year growth in customer financing, as we gained market share in retail and closed some landmark deals in corporate banking. This growth was efficiently funded by AED 26 billion customer deposits, including growing our Current and Savings accounts by AED 8.8 billion.

We demonstrated balance sheet strength across all key ratios, with asset quality matrix improving as our non-performing asset ratio reaching 4.0%, its lowest level since Q1 2017 due to active management of legacy portfolios and strong underwriting standards.

On the digital front, we embraced new opportunities by envisioning future technological advancements and continuing to deliver digital solutions that drive seamless banking experiences. We introduced 110 new features to our mobile app and increasingly used data to provide our staff with the tools and insights for effective customer management. Digitalization has enabled us to handle higher volumes with faster turnaround times, improve efficiency, and strengthen risk management. This year also saw the launch of ADIB Ventures, which aims to create an ecosystem that fosters fintech partnerships and accelerates the development of digital solutions

With our renewed 2035 vision, we aspire to build a future-proof bank that not only meets today’s dynamic needs but also anticipates tomorrow’s challenges. Our vision aligns closely with the national priorities, emphasizing the use of Gen AI, focusing on Emiratization and sustainability."

GROUP FINANCIAL REVIEW

 

> Income statement AED (Mn) Q4 2024 Q4 2023 Δ% FY 2024 FY 2023 Δ% Net revenue from funds 1,663 1,616 +3% 6,566 6,122 +7% Non-funded income 974 984 -1% 4,066 3,172 +28% Total operating income 2,637 2,599 +1% 10,632 9,294 +14% Total operating expenses before impairment charge (821) (876) -6% (3,145) (3,061) +3% Provision for impairment (172) (189) -9% (620) (760) -18% Profit before Zakat and tax 1,645 1,534 +7% 6,868 5,472 +26% Zakat and tax (178) (33) +437% (766) (221) +247% Profit after Zakat and tax 1,467 1,501 -2% 6,101 5,251 +16%               EPS (AED)       1.493 1.284 +16% Net profit margin       4.35% 4.50% -15bps Cost to income ratio       29.6% 32.9% -3.4ppts Cost of risk       0.53% 0.49% +3bps ROAE       27.9% 27.1% +82ppts ROAA       2.91% 2.91% +1bps

 

		Group Net profit before tax was AED 6.9 billion, up 26% YoY compared to AED 5.47 billion in 2023 reflecting strong business momentum. Group net profit after tax grew 16% in 2024 to AED 6.1 billion compared to AED 5.25 billion in 2023 implying earnings per share of AED 1.493. Revenues increased by 14% in 2024 to AED 10.6 billion versus AED 9.3 billion in 2023 on strong business volumes coupled with strength in fee-based businesses and higher Investment income. Funded income rose 7% to reach AED 6.6 billion supported by higher volumes in financing with 10% growth in average earning assets thereby showing overall stability in the net profit margin to 4.35%. ADIB preserves one of the highest margins in the market, supported by one of the lowest cost of funds in the market. The bank continues to benefit from growth in diversified income streams, with non-funded income increasing by 28% to AED 4.1 billion during 2024, driven by a 39% increase in investment income and 12% increase in fees and commissions from various products including card sales Non-funded income represents 38% of total income, underlining the strategic focus on revenue diversification compared to 34% last year. Fees and commissions income was up 12% year-on-year. Overall revenues were supported by growth in new customers of more than 216,000 during 2024, showcasing ADIB’s long-term commitment to its customers and continuous efforts to deliver superior customer service. Operating expenses for 2024 were AED 3.1 billion, reflecting a 3% year-over-year increase. This rise demonstrates cost discipline despite continued investments in talent and strategic initiatives to support business growth. Despite this, there was an overall improvement in the cost-to-income ratio of 3.4 percentage points to 29.6%. The net impairment charge for the full year decreased by 18% to AED 620 million. The cost of risk remains stable at 0.53%, well within the guidance. NPA ratio is 4.0% declining from 6.1% last year. The provision coverage of non-performing financing (including collaterals) improved by 17.9 percentage points to 157.4%.

 

 

 

		> Balance Sheet AED (Mn) 31 Dec 2024 31 Dec 2023 Δ% Cash and balances with central banks 32,040 31,498 +2% Due from financial institutions 10,607 11,304 -6% Customer financing, net 142,611 115,002 +24% Investments 29,286 24,483 +20% Investment in associates 896 834 +7% Investment and development properties 2,056 1,986 +4% Other assets 8,413 7,719 +9% Total assets 225,910 192,827 +17% Due to financial institutions 5,530 2,555 +116% Depositors’ accounts 182,675 157,067 +16% Other liabilities 7,551 5,127 +47% Sukuk financing instrument 1,836 1,836 - Total liabilities 197,593 166,585 +19% Share capital 3,632 3,632 - Retained earnings 13,501 11,358 +19% Other reserves 5,458 5,384 +1% Equity attributable to shareholders of the bank 22,591 20,374 +11% Tier 1 sukuk 4,754 4,754 - Non - controlling interest 972 1,114 -13% Equity attributable to equity holders of the bank 28,317 26,242 +8%         Non-performing financing 5,941 7,292 -19% NPA ratio 4.0% 6.1% -2.0ppts NPA coverage ratio 81.5% 74.3% +7.2ppts NPA coverage ratio with collaterals 157.4% 139.5% +17.9ppts Risk weighted assets 159,983 138,211 +16% Common Equity Tier 1 Ratio 12.07% 12.23% -16bps Tier 1 Ratio 15.10% 15.67% -57bps Capital Adequacy Ratio 16.21% 16.80% -59bps Financing to deposit ratio 78.1% 73.2% +4.9ppts Advances to stable fund ratio (ASFR) 81.0% 76.0% +5.0ppts Eligible Liquid Asset Ratio (ELAR) 17.8% 21.0% -3.2ppts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

• Total assets reached AED 226 billion as of 31 December 2024, an increase of 17% from 31 December 2023. This growth was driven mainly by an increase in net financing and in the investment portfolio. Over the last five years, the balance sheet has expanded by almost AED 100 billion since 2020, achieving a compound annual growth rate (CAGR) of 15%.
• Gross customer financing increased by 22% year-over-year to AED 147 billion, driven by growth in retail financing portfolios and wholesale financing, mainly government and public sector enterprises. This reflects our ability to gain market share across different segments.
• The bank’s investment portfolio increased 20% year-over-year to AED 29.3 billion.
• Customer deposits amounted to AED 183 billion as of 31 December 2024, up 16% from 31 December 2023 as CASA deposits increased by 9% to AED 111 billion, comprising 61% of total customer deposits.
• Non-performing financing reached AED 5.9 billion as of 31 December 2024, compared to AED 7.3 billion last year.
• Non-performing financing ratio improved to 4.0% versus 6.1% as of 31 December 2023.
• Total shareholders' equity stood at AED 28.3 billion compared to AED 26.2 billion last year.
• ADIB continued to maintain a healthy liquidity position with an advance to stable funding ratio at 81.0% compared to 76.0% on 31 December 2023, while the eligible liquid asset ratio was 17.8% as of 31 December 2024 versus 21.0% on 31 December 2023.
• The bank further strengthens its capital position with the Common Equity Tier 1 ratio at 12.07%, compared to 12.23% as of 31 December 2023 on the back of strong earnings and ongoing optimization initiatives. Capital adequacy ratio of 16.21% as of 31 December 2024, exceeding regulatory requirements prescribed by the UAE Central Bank.

For media information, please visit www.adib.ae or contact:
Lamia Hariz
Head of Corporate Communications, Marketing ESG & Investor Relations
Email: lamia.hariz@adib.com

ADIB 2035

Building from our strong foundations as a leading islamic bank, operating across 7 countries and serving around 1.5 million customers, ADIB has strongly positioned itself for another growth phase backed by its solid financial performance, strong customer base and brand value. ADIB has announced a 2035 vision, reinforcing our ambition to be the World’s most innovative Islamic Bank. Through the 2035 vision, ADIB will continue its development path for the next 10 years, with a focus on three strategic pillars that will guide our efforts to achieve this vision.

• Leading with new technologies and Gen AI

We will seamlessly integrate Gen AI into every aspect of our business, from delivering hyper personalized customer experiences to optimizing our operations, enhancing our risk management and unlocking new growth opportunities.

• Revolutionize customer experience

By leveraging digital technologies and placing customers at the heart of every decision by delivering fast, simple and seamless banking solutions and experiences, we are transforming the way our customers interact with us. we are committed to creating an exceptional customer experience that sets us apart in the marketplace.

• Advancing sustainability initiatives

We will remain committed to embed sustainability into every aspect of our business. Our commitment is to provide sustainable financing solutions and support business in their transition plan. We are also committed to foster an environment where inclusion, staff wellbeing and empowerment are at the heart of everything we do.

By aligning with these strategic pillars, ADIB is positioning Itself for long term growth with the aim to be a digitally transformed regional and global islamic financial powerhouse delivering exponential growth from diverse sources of income.

35 INDUSTRY AWARDS IN 2024  

Awards	Categories
Bonds and loans and sukuk	Bonds, Loans & Sukuk Middle East Awards 2024
Euromoney	World's Best Islamic Bank for ESG Middle East's Best Islamic Bank UAE's Best Domestic Islamic Bank             UAE's Best Bank for corporate responsibility             UAE's Best Bank for HNWIs
Global Finance	Best bank for transition/ sustainability linked bonds in the Middle East Safest Islamic bank in the world             Best Islamic Bank for ESG award Best Bank for SMEs in the U.A.E.
IFN	IFN Social Impact, SRI ESG Deal of the Year 2023 IFN Sovereign & Multilateral Deal of the Year 2023 IFN UAE Deal of the Year 2023 Best Islamic Bank for Treasury Management 2023
EMEA	Best Islamic bank in the UAE Sustainability award (Middle East level)
Meed	MENA Islamic Finance Bank of the Year Best Islamic Bank for ESG Best Retail Bank - UAE
Banker FT	Islamic Bank of the Year - Middle East
IJGlobal MENA	Renewable Energy Deal of the Year Desalination Deal of the Year Water Deal of the Year
Digital banker	Islamic Credit Card of the Year Best Islamic Digital Bank – Middle East Best Islamic Digital Bank – United Arab Emirates Best Domestic Islamic Retail Bank – United Arab Emirates             Best Islamic Retail Bank – Middle East
The asset Triple A	Islamic Issuer of the year Islamic Bank of the Year Best Islamic Retail Bank Best Green Sukuk (ADIB US$500 million green sukuk) Best Green Sukuk – Retail (Majid Al Futtaim Holding US$500 million green wakala/murabaha) Best Green Sukuk – Real Estate (Aldar Investment Properties US$500 million wakala/murabaha)             Best New Sukuk (Ittihad International Investment US$350 million ijara/murabaha sukuk)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-Ends-

About ADIB

ADIB is a leading bank in the UAE with AED 226 billion in assets. The bank also offers world-class online, mobile and phone banking services, providing clients with seamless digital access to their accounts 24 hours a day.

ADIB provides Retail, Corporate, Business, Private Banking and Wealth Management Solutions. The bank was established in 1997, and its shares are traded on the Abu Dhabi Securities Exchange (ADX).

ADIB has a strong presence in six strategic markets: Egypt, where it has 70 branches, the Kingdom of Saudi Arabia, the United Kingdom, Qatar, and Iraq.

Named World’s Best Islamic Bank by The Financial Times - The Banker publication, ADIB has a rich track record of innovation, including introducing the award-winning Ghina savings account, award-winning co-branded cards with Emirates airlines, Etihad and Etisalat and a wide range of financing products.

ADIB Investor relations Mobile application

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