ADIB's net profits plunge 52% in H1-20

Lower net profits are driven by higher impairment charges due to a decrease in revenues

  
Abu Dhabi Islamic Bank (ADIB) UK, a wholly-owned subsidiary of Abu Dhabi Islamic Bank. Image for illustrative purposes.

Abu Dhabi Islamic Bank (ADIB) UK, a wholly-owned subsidiary of Abu Dhabi Islamic Bank. Image for illustrative purposes.

ADIB/Handout via Thomson Reuters Zawya
Abu Dhabi - Mubasher: The net profits after zakat and tax of Abu Dhabi Islamic Bank (ADIB) dropped by 52.2% to AED 587.6 million in the first half (H1) of 2020 from AED 1.23 billion in the year-ago period.

Lower net profits are driven by higher impairment charges due to a decrease in revenues and challenging market conditions amid the coronavirus (COVID-19) pandemic.

Due to the COVID-19 outbreak, the bank's credit provisions and impairments increased to AED 708.6 million in H1-20 from AED 345 million in H1-19.

The bank's net revenues reached AED 2.56 billion in the first six months of 2020, down from AED 2.89 billion in the corresponding period of 2019.

The bank's total assets recorded AED 124.4 billion as of 30 June 2020, 1.2% lower than AED 125.9 billion as of 31 December 2019.

Commenting on the bank's performance, the chairman of ADIB, Jawaan Awaidah Al Khaili, said: "Our levels of capital and liquidity continue to remain strong, with both our common equity Tier-1 ratio and advances to deposits ratio increasing from the end of the previous quarter."

Al Khaili added: "Our levels of capital and liquidity continue to remain strong, with both our common equity Tier-1 ratio and advances to deposits ratio increasing from the end of the previous quarter."

It is noteworthy to mention that in the first quarter (Q1) of 2020, ADIB saw net profits of AED 269.7 million, decreasing by 55.1% from AED 600.3 million in the corresponding period of 2019.

Source: Mubasher

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