- 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%.