ADIB net profit rises 2.9% in the first nine months of 2016 to AED 1.5 billion as customer numbers continue to increase

-           9 month 2016 net profit increased by 2.9% to AED 1,498.4 million

-           9 month 2016 net revenue increased by 7.4% to AED 4,041.3 million

-           Customer numbers up by over 48,000 year-on-year

-           Advances-to-stable funds ratio of 85.3% at 30 September

-           Cost-to-income ratio improved to 43.0% at 30 September

FINANCIAL HIGHLIGHTS

Strong financial performance amidst challenging conditions

• Group net profit for first nine months of 2016 increased by 2.9% year on year to AED 1,498.4 million
• Group net revenues for first nine months of 2016 increased by 7.4% year on year to AED 4,041.3 million
• Credit provisions and impairments for  first nine months of 2016 increased by 25.8% to AED 717.8 million
• Group net profit for Q3 2016 increased by 1.1% to AED 508.9 million vs Q3 2015.
• Group net revenues for Q3 2016 increased by 6.6% to AED 1,369.1 million vs Q3 2015.
• Cost-to-income ratio improved to 43.0% in Q3 2016 from 45.6% in Q3 2015

Further improvement in capital strength

• Capital adequacy ratio under Basel II rose to 15.0% at end of Q3 2016 from 14.7% a year earlier
• ADIB remains one of the most liquid Banks in the UAE:
• Advances-to-stable funds ratio (a regulatory ratio) of 85.3%
• Customer financing-to-deposits ratio of 79.7%
• Total equity at AED 15.6 billion

Assets and customer deposits increase

• Total assets as of 30 September 2016 were AED 122.6 billion,  an increase of 4.8% year-on-year
• Customer deposits increased 10.3% year-on-year to AED 98.6 billion
• Net customer financing assets grew by 1.8% to AED 78.6 billion against same period in 2015
• Total non-performing accounts-to-gross financing assets ratio increased to 4.4% in Q3 2016 vs. 4.0% in Q3 2015

Growth in customer numbers

• Customer numbers increased by 5.6% year-on-year to 903,669
• Network of 88 branches and 780 ATMs

Abu Dhabi, UAE – 24 October 2016: Abu Dhabi Islamic Bank (ADIB) Group reported a 2.9% increase in net profit for the first nine months of 2016 to AED 1,498.4 million while increasing total assets to AED 122.6 billion.

The bank now has over 903,000 customers, having added 48,000 new customers in the year to the third quarter, thanks to a competitive product offering and strong investments in its digital platforms. ADIB recently launched a digital-only bank in partnership with Fidor Bank of Germany aimed at young 'Gen Y' customers, which will allow it to provide efficient and personalized solutions to meet the changing needs of its customers.

Tirad Al Mahmoud, Chief Executive Officer of ADIB, said: "ADIB continues to grow market share, net revenues and customer numbers, achieving a solid financial performance. The bank has taken a prudent view on credit extension and capital management, while continuing our conservative practice of building provisions, given the ongoing challenging global economic environment. We are investing strongly in areas that will help achieve further growth in the future, including in particular customer experience and our digital platforms. The recent launch of a digital-only bank aimed at the young 'Gen Y' customers puts us at the forefront of innovation in the UAE banking sector, and will allow us to provide efficient and personalized  solutions that meet the changing needs of our growing customer base."   

ADIB has maintained its position as one of the most liquid in the UAE. Its customer financing-to-deposits ratio stands at 79.7 percent, and its capital adequacy ratio under Basel II was 15.0 percent as at September 30, up from 14.7 percent a year earlier. Total equity, including Tier 1 capital instruments increased 6.0 percent year on year to AED 15.6 billion at the end of September.

As the bank increased customer numbers, its net customer financing grew by 1.8 percent to AED78.6 billion at the end of September, with total assets up 4.8 percent to AED122.6 billion. Customer deposits increased 10.3 percent year on year to AED 98.6 billion.

Net revenues increased by 6.6 percent year-on-year to AED 1.37 billion. The bank's focus on greater efficiency and productivity resulted in the cost-to-income ratio improving to 43.0 percent in the third quarter, from 45.6 percent a year earlier.

With ADIB's non-performing loan ratio increasing marginally to 4.4 percent at the end of September, from 4.0 percent a year earlier, ADIB has continued its conservative approach on provisioning. The bank took an additional AED 287.3 million in specific provisions during the third quarter.

Collective provisions now represent 2.23 percent of total customer risk weighted assets, well above the 1.5 percent regulatory guidelines.

ADIB is further enhancing its strategic positioning as one of the top retail banks in the UAE, with a network of 88 branches, 780 ATMs and market leading mobile and internet banking platforms.

Through its investment in digital technology, the bank is launching new products and services such as mobile apps for both retail and corporate customers and launching a new digital bank for 'Gen Y' customers in the 18 to 30 age group.

ADIB has just over 2,200 employees and remains one of the leading banks in the recruitment, development and promotion of local talent with over 900 UAE nationals, and an Emiratisation ratio of 41.6 percent.

Group Financial highlights – Four-year performance

As at 30 September                                                          All figures are in AED millions