Abu Dhabi Islamic Bank net profit at Dhs1.1bn in H1 2021, up 89% y-on-y

Abu Dhabi Islamic Bank (ADIB) has reported a net profit increase of 89 per cent year-on-year in H1 2021 to Dhs1.109bn, up from Dhs588m in the corresponding period last year.

It also said that its total revenue grew 3.4 per cent to Dhs2.644bn compared to Dhs2.557bn in H1 2020.

It attributed the growth in revenue to an increase in non-funding income of 19 per cent, boosted by a 11 per cent improvement in fee income.

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

#ADIB records an 89% surge in #H12021 net profits to AED 1.1 billion reflecting strong underlying performance across all business lines. Read more about our results here https://t.co/3SBLT1avFe pic.twitter.com/PghDOV5Slz

— ADIB Tweets (@ADIBTweets) July 28, 2021

ADIB added that it saw a 5 per cent year-on-year increase in total assets, driven by a 7 per cent growth in deposits and a 3 per cent growth in gross customer financing compared to H1 2020.

“Our return on shareholders’ equity have also improved to 14 per cent, in line with our commitment to enhance our profitability and deliver superior value to our shareholders,” said ADIB chairman Jawaan Awaidha Suhail Al Khaili.

“We are focused on the priorities we outlined as part of our 5-year strategic review. 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.

“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.”

At the end of Q1 2021, the bank had posted Dhs608m net profit for Q1 2021, up 125 per cent from Dhs270m in Q1 2020, and an increase of 26 per cent against Q4 2020.