ADIB records an 89% surge in H1 profits

UAE ISLAMIC FINANCE

ABU DHABI- Abu Dhabi Islamic Bank (ADIB) delivered strong financial results for H1 2021, with net profit surging 89 percent year-on-year to AED 1,109 million from AED 588 million in H1 2020. The growth in net profit reflects the strong underlying performance across the business supported by a 3.4 percent growth in total revenue to AED 2,644 million compared to AED 2,557 million in the same period last year. Growth in revenue was driven by an increase in non-funding income of 19 percent, boosted by a 11 percent improvement in fee income.

The financial results were also supported by an 8 percent decline in operating expenses with cost to income ratio improving 5 percent due to the successful implementation of technology-led initiatives that helped reduce the cost of sales and customer acquisition while also streamlining internal processes.

ADIB continued to demonstrate strengths and depths in its balance sheet with a 5 percent year-on-year increase in total assets, driven by a 7 percent growth in deposits and a 3 percent growth in gross customer financing compared to H1 2020.

Chairman of ADIB Jawaan Awaidha Suhail Al Khaili said:'' "We are really encouraged by our financial results in the first half of 2021 as we continue to deliver strong operational performance across all business lines. Despite continued challenging market conditions, ADIB delivered robust year-on-year growth underscored by positive increases on our assets, revenues, and net profits while also maintaining a strong balance sheet, liquidity, and capital ratios. Our return on shareholders’ equity have also improved to 14 percent, in line with our commitment to enhance our profitability and deliver superior value to our shareholders.''

"Our investments in key strategic and digital initiatives enabled us to enhance customer experience, support business productivity, and position the bank for future growth. We have seen an increase in key digital metrics with more and more customers benefiting from our enhanced digital banking features,'' he added.

"We are focused on the priorities we outlined as part of our 5-year strategic review. We are now embarking on a new journey with a renewed purpose and a revamped vision. We are aiming to develop and launch new banking products and services that will allow us to support customers in all important financial stages in their lives while attracting new segments where we can grow profitably building on our strong brand and market position. We will continue with our digital transformation strategy to build a future-proof bank by rigorously simplifying and centralizing our operating model that will enable us to focus on clients and work more efficiently.

"Looking ahead and despite ongoing uncertainties, we believe that the UAE economy has the potential to have extremely robust, multi-year growth supported by the government stimulus measures, the strong vaccine roll out and the positive consumer sentiment around the potential end of the pandemic. Against this backdrop, we believe we are well positioned for a period of sustained growth for the rest of 2021, leveraging on our strong market position, strategic initiatives and operational resilience."