Abu Dhabi, UAE : Abu Dhabi Islamic Bank (ADIB), a leading Islamic bank in the region, reported a net profit of AED 587.6 million and AED 2.5 billion in net revenue for H1 2020.  The decline in profitability was predominantly driven by higher impairment charges, due to the unprecedented operating environment, as well as lower revenues, given challenging market conditions. Despite these macroeconomic headwinds, ADIB was able to sustain robust levels of capital, with a capital adequacy ratio of 18.18% that remains well above regulatory thresholds, as well as healthy liquidity and a resilient funding profile with an advances to deposit ratio of 83.1%.

Key Financial Highlights

  • Group net revenue for H1 2020 decreased to AED 2,556.6 million from AED 2,887.1 million in H1 2019.
  • Group net profit for H1 2020 decreased to AED 587.6 million vs. AED 1,230.5 million in H1 2019.
  • Operating expenses of AED 1,258.4 million decreased by 4.0% vs. H1 2019, reflecting the successful implementation of our cost initiatives that were taken to create future efficiencies and capabilities to continue our investment into key strategic and digital programs that are designed to support business growth and enhance the customer experience.
  • Credit provisions and impairments for H1 2020 increased by 105.4% to AED 708.6 million from AED 345.0 million in H1 2019.
  • ADIB continued to maintain one of the lowest cost of funds in the region supported by an efficient funding strategy and higher CASA which enabled the Bank to maintain one of the highest net profit margins in the market of 3.6% in H1 2020 despite the low rate environment.
  • Net customer financing increased by 3.9% to AED 82.0 billion from AED 78.9 billion at the end of H1 2019. The rise was led by growth in Corporate Banking financing.
  • CASA deposits increased by 4.2% year on year to AED 74.6 billion, comprising 75.6% of the AED 98.6 billion total customer deposits compared to 71.7% a year earlier.
  • Total assets as at 30 June 2020 were AED 124.4 billion, representing a decrease of 1.2% from AED 125.9 billion at the end of 31 December 2019.
  • Advances to stable funds ratio was 86.6% at 30 June 2020, compared to 84.0% at 30 June 2019 (84.1% at 31 December 2019).
  • The bank’s common equity tier 1 ratio of 12.46% and capital adequacy ratio of 18.18% remain well above regulatory requirements. 

Read the full report here.

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About ADIB:

ADIB is a leading bank in the UAE with more than AED 124 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 presence in six strategic markets: Egypt, where it has 70 branches, the Kingdom of Saudi Arabia, the United Kingdom, Sudan 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.

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

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