ADIB’s H1 2023 profit grows by 61% to Dhs2.3bn

Abu Dhabi Islamic Bank (ADIB) reported a 61 per cent growth in net profit in the first half of 2023 to Dhs2.3bn from Dhs1.4bn in H1 2022, according to the bank’s financial results reported by state news agency WAM.

Net profit for Q2 2023 reached Dhs1.2bn with 68 percent growth versus Q2 2022.

#ADIB has delivered a strong start to 2023 with y-o-y net profit growth of 61% to AED 2.3 billion in H1 2023 and a ROE of 25%.

These results reflect our commitment to delivering long-term value to our shareholders.

Read more about it! https://t.co/D6nnf3YQ20 pic.twitter.com/qkGOS2J3iY

— ADIB Tweets (@ADIBTweets) July 27, 2023

ADIB half-yearly performance

Revenue in H1 2023 improved by 50 per cent reaching Dhs4.3bn compared to Dhs2.8bn last year due to income diversification mix and strong growth across all business segments and products, as per ADIB‘s report.

Funded income grew by 75 per cent to Dhs2.9bn versus Dhs1.7bn in the corresponding period of last year, driven by higher volumes and better margins, while non-funded income grew by 14 per cent to reach Dhs1.3bn versus Dhs1.2bn in the corresponding period of last year driven by 15 per cent growth in fees and commissions.

“ADIB reported a record performance in the first half of 2023, delivering net profit of Dhs2.3bn, record revenue of Dhs4.3bn, which equates to an average return on equity of 25 per cent reflecting the success of the group’s diversified business model and a healthy regional economy. Our ability to deliver strong business momentum is the result of our solid capital position, prudent risk management, diversified business lines and nimble execution of our strategy underpinned by an on-going digital and innovation strategy,” ADIB chairman Jawaan Awaidah Al Khaili said.

The bank’s cost to income ratio was managed down with an improvement of 7.0 percentage points to 33.9 percent versus 40.9 percent in the corresponding period last year. As for total assets, they increased 28 per cent settling at Dhs182bn, driven by 18 per cent growth in gross financing and 22 per cent growth in investments.

Customer deposits rose 31 per cent to reach Dhs150 bn versus Dhs115bn in H1 2022.

“We have benefited from strong deposit inflows and grew our market share by attracting approximately 96,000 new customers to ADIB in the first half of 2023 emphasising the strength of our brand.”

Nasser Abdulla Al Awadhi, ADIB’s group chief cxecutive officer, said, “ADIB has delivered another strong set of results in the first half of 2023 with net profit up 61 per cent year-on-year driven by 50 per cent growth in revenues on the back of increased transaction volumes and improved margins led by an efficient funding base and higher yields. Both our Retail and Corporate Businesses have performed well with high quality income growth and double-digit returns.

“The momentum across the group allows us to maintain a robust capital position and deliver attractive high returns to shareholders.”

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