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ADIB delivers a strong start to 2022 with y-o-y net profit growth of 18% to AED 715 million in Q1 2022

  • ​18% increase in Net Profit to AED 715 million with ROE improving 210 basis points to 17.0%
  • Revenue up 6% to AED 1.4 billion driven by 12% increase in non-funded income
  • Effective cost control strategy leads to a reduction of 3.4 percentage points in Cost to Income ratio to 40.9%
  • Improved economic outlook drives 15% Impairment decline, despite improved coverage on non-performing financing
  • Steady balance sheet growth to AED 139 billion with 9% customer financing growth and 8% deposits growth
  • Robust capital position with a common equity tier 1 ratio of 12.7%

 

Abu Dhabi Islamic Bank reported a year-on-year growth in Net Profit of 18% for the first quarter of 2022 to AED 715 million from AED 608 million in Q1 2021, resulting from solid top-line growth, continued optimization of the cost base and lower impairments. Revenue for Q1 2022 improved 6% to AED 1,409 million compared to AED 1,336 million last year. This arose from an 12% year-on-year increase in non-funded income to AED 620 million and 1% growth in funded income to AED 789 million, achieved despite the lower rate environment.

Cost discipline was maintained amid ongoing investment in digital initiatives with operating expenses declining 2% year-on-year to AED 577 million and the cost to income ratio improved 3.4 percentage points to 40.9%. Impairments declined 15% year-on-year to AED 113 million for the first quarter of 2022, reflecting an overall improvement in economic conditions. This reduction was achieved while improving the provision coverage of non-performing financing (including collaterals) by 9.2 percentage points to 121.1%.

Total assets increased 6% year-on-year to reach AED 139 billion, driven by 9% growth in gross financing and 18% in investments. Customer deposits rose 8% year-on-year to AED 111 billion from strong Current and Savings Accounts (CASA) and short-term Investments generation. ADIB maintained a robust capital position with a common equity tier 1 ratio of 12.7% and total capital adequacy ratio of 18.1%. Further, the bank's liquidity position was healthy and comfortably within regulatory requirements, with the advances to stable funding ratio at 86.6% and the eligible liquid asset ratio at 16.0%.​