Abu Dhabi, UAE: Abu Dhabi Islamic Bank (ADIB), a leading Islamic bank in the region, announced a growth of 4% in net profit to AED 2,601.1 million. Operating Profit increased 4.4% to AED 3,262.2 million, driven by a 3.1% growth in customer financing to AED 81.1 billion, a 30.7% increase in investment income to AED 687.0 million and a 23.6% rise in foreign exchange income to AED 317.5 million. Group net revenues increased by 2.5% in 2019 to AED 5,915.2 million.
Key Financial Highlights
- Group net profit for 2019 increased by 4.0% to AED 2,601.1 million vs. AED 2,500.8 million in 2018. Group net revenues for 2019 grew by 2.5% to AED 5,915.2 million AED 5,769.5 million in 2018 due to growth in customer finance and higher investment and foreign exchange income.
- Net profit margin was 4.25%, despite lower rates in the market, helped by the positive impact of the low cost of funds and a growth in customer financing.
- Operating expenses at AED 2.6 billion were flat year-on-year, reflecting cost discipline initiatives that led to a decrease of 1% in cost to income ratio. This was achieved despite investments in key strategic and digital initiatives designed to support business growth, enhance customer experience and create future efficiencies.
- Total assets as of 31 December 2019 were AED 125.9 billion, representing an increase of 0.6% from AED 125.2 billion at the end of 31 December 2018.
- Net customer financing increased by 3.1% to AED 81.1 billion from AED 78.7 billion at the end of 31 December 2018.
- Credit provisions and impairments for 2019 increased by 6.1% to AED 658.1 million vs. AED 620.1 million in 2018, with net cost of risk increasing to an annualised 78 bps.
- CASA deposits increased by AED 1.7 billion (2.5% increase year on year) to AED 69.8 billion as at 31 December 2019, comprising 69% of the 101.4 billion total customer deposits compared to 67.8% a year earlier.
- Our advances to stable funds ratio increased in Q4 2019 to 84.1% from 82.9% at 31 December 2018 reflecting our ability to make optimal use of the balance sheet.
- The bank’s common equity tier 1 ratio of 13.11% and capital adequacy ratio of 18.88% remains well above minimum requirements.
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About ADIB:
ADIB is a leading bank in the UAE with more than AED 125 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 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
Tel: +971 56 1623535
Email: lamia.hariz@adib.com
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