Abu Dhabi Islamic Bank posts 125% rise in Q1 net profit

Abu Dhabi Islamic Bank (ADIB) has posted Dhs608m in net profit for Q1 2021, surging 125 per cent from Dhs270m in Q1 2020, and up 26 per cent against Q4’20.

Meanwhile, its revenue increased 3.3 per cent to Dhs1.33bn from Dhs1.29bn during the corresponding period last year with non-funding income growing by 30 per cent offsetting the impact of low rate environment, official news agency WAM reported.

Operating expenses were reduced by 7 per cent year-on year due to the implementation of technology-led initiatives that helped reduce the cost of sales and customer acquisition. Meanwhile, its assets grew by 6.5 per cent due to a growth in customer financing by 5 per cent compared to Q1 2020.

Jawaan Awaidah Al Khaili, ADIB chairman, said: “We have made a strong start to 2021, in what continues to be an uncertain economic environment related to the Covid-19 pandemic. Our net profit surged 125 per cent compared to Q1 2020 and up 26 per cent versus Q4 2020. This reflects our strong underlying performance across our all our businesses, partially driven by a rapidly improving economy which allowed us to decrease our impairment by 66 per cent compared to Q1 2020.

“This solid first quarter was also achieved through continued cost discipline which saw our operating expenses improve by 7 per cent year on year, as well as sustained business momentum and targeted strategic initiatives which partially offset the headwinds from record low rates and the overall economic slowdown brought about by the pandemic.”