Home GCC UAE Abu Dhabi Islamic Bank posts 45% rise in net profit for 2021 The bank’s revenue increased 4 per cent to Dhs5.56bn by Zainab Mansoor February 7, 2022 Abu Dhabi Islamic Bank has reported Dhs2.33bn in net profit for 2021, marking a 45 per cent year-on-year increase from Dhs1.60bn recorded in 2020. Revenue for 2021 improved 4 per cent to Dhs5.56bn, compared to Dhs5.358bn during the previous year. The lender posted a 9 per cent year-on-year increase in non-funded income to Dhs2.215bn and a 1 per cent growth in funded income to Dhs3.345bn. Meanwhile, operating expenses declined 8 per cent year-on-year to Dhs2.26bn, while the cost to income ratio improved 5.1 percentage points to 40.7 per cent. Overall revenues were supported by new customer growth of approximately 116,000 during the 12 months period, ending December 31, 2021. Impairments declined 27 per cent year-on-year to Dhs954m for the year 2021. However, total assets increased 7 per cent from the previous year end to reach Dhs136.9bn, a statement said. Customer deposits rose 8 per cent year-on-year to Dhs109.6bn, while the lender maintained a common equity tier 1 ratio of 12.93 per cent and total capital adequacy ratio of 18.57 per cent after adjusting for proposed dividend for 2021. Jawaan Awaidah Al Khaili, chairman of ADIB, said: “ADIB reported a strong performance in 2021, driving growth with full year net profit up 45 per cent compared to 2020. Across our businesses, we saw elevated growth in client activity and our teams responded with differentiated ideas and offerings to meet our clients’ needs and create long-term value for our shareholders. Our strong performance in 2021 has allowed ADIB’s board of directors to recommend an increase in its cash dividend payout by 51.2 per cent representing 48.5 per cent of the year’s net profit, in line with our commitment to driving long-term value for our shareholders.” Mohamed Abdelbary, group CFO, added: “We were able to deliver solid top-line growth of 4 per cent during the year, driven by higher income from financing and growth in investment income. In combination with improved operating efficiency and normalising risk cost, this revenue growth has resulted in a substantial 45 per cent year-on-year increase in our net profit, which led to a healthy return on equity of 14.3 per cent. We also had strong deposit growth of 8 per cent year-on-year and gross customers financing of 7 per cent year-on-year from both consumer and corporate finance.” Tags Abu Dhabi Islamic Bank customer deposits net profit Revenue 0 Comments You might also like Abu Dhabi’s IHC posts Dhs18bn in nine-month net profit Abu Dhabi’s ADNOC Drilling net profit rises 28% in Q2 2024 Petrochemicals giant SABIC posts 85% second-quarter profit leap UAE’s ADIB posts Dhs3.03bn in half-year net profit