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ADIB Net Profit Increases By 14.1% in H1 2017 To AED 1,129.1 Million |
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Net profit for H1 2017 increased by 14.1% to AED 1,129.1 million vs. AED 989.5 million in H1 2016.Abu Dhabi Islamic Bank (ADIB) delivered a solid set of results with net profit for H1 2017 up 14.1% year-on- year to AED 1,129.1 million and registering a AED 551.6 million profit in Q2 2017 up to 8.7% from Q2 2016. The bank, which has seen customer numbers rise 2.1 percent to over 951,000 at the end of June 2017 from last year, increased revenues in the first half of the year by 4.1% to AED 2,782.1 million vs. AED 2,672.3 million in H1 2016, largely due to higher fee income from its card, wealth management and takaful businesses. Mr. Khamis Buharoon, ADIB Vice Chairman and acting CEO said: “ADIB continues to produce a strong financial performance by attracting and retaining customers with an emphasis on customer experience, through our market-leading digital offering and an extensive network across the UAE, including our new highly automated ADIB Express branches. While we continue to be cautious on extension of credit due to the prevailing macro-economic environment, ADIB has increased fee income in areas such as card, wealth management, transactional banking and shariah-compliant insurance. By focusing on attracting deposits, ADIB remains one of the most liquid banks in the UAE and our balance sheet strength positions the bank well for growth in line with the UAE’s strategy of promoting economic diversification. ADIB is investing significantly in digital platforms and corporate banking services to ensure that we stay at the forefront of the UAE banking sector.” Provisioning in the second quarter decreased by 7.5 percent year on year to AED 216.4 million, while prudent cost controls led to the bank’s cost-to-income ratio improving to 44.5 percent from 45.7 percent in the first quarter of 2017. Collective provisions now represent 1.96 percent of total customer risk-weighted assets, well above the 1.5 percent minimum set out in regulatory guidelines. ADIB recorded a 26.9 percent year-on-year rise in fees and commissions to reach AED 273.7 million in the second quarter of 2017. The bank also reported a foreign exchange gain of AED 76.8 million for the quarter, up 75.8 percent from a year earlier. ADIB continues to be one of the most liquid banks in the UAE, with a customer financing-to-deposits ratio of 76.7 percent. Customer deposits have grown 2.7 percent in the last year to reach AED 100.0 billion as of the end of June. The bank has a strong capital position, with a capital adequacy ratio under Basel II principles of 15.6 percent – well above the 12 percent mandated by the Central Bank of the UAE. Similar capital ratios are also above the regulatory threshold of Basel III regulatory requirements, which will be introduced over the next two years. In line with the Group’s 2020 strategic ambition, ADIB has continued to selectively recruit the necessary talent required to service a comprehensive range of client segments and selective industries through a broad range of products and solutions while also enhancing governance structures. The bank’s headcount in the UAE was 2,106 at the end of the second quarter of 2017 ADIB remains one of the leading banks in advocating the recruitment, development and promotion of local talent in all the markets in which it operates. The Bank now employs 841 UAE Nationals. ADIB is investing significantly in providing the best customer experience in the sector. The bank is launching a digital-only bank in partnership with Germany’s Fidor Bank, while setting new standards of convenience in personalized service, through new highly automated ADIB Express branches, and branches dedicated to corporate clients. ADIB’s investment in digital platforms has been well received by customers. Over 90 percent of transactions at ADIB are now conducted through automated or digital platforms. This contributed to ADIB winning ‘Best Islamic digital bank in the region and best Online Banking Services at the Banker Middle East UAE Product Awards 2017And best Islamic bank in the UAE by Banker Magazine. |
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