Abu Dhabi Islamic Bank (ADIB) recorded a 41 per cent jump in net profit before tax for the first quarter of 2024 to Dh1.64 billion, with revenue improving by 24 per cent on growth across all the lender's business segments and products.
“We started 2024 on a strong note with net profit after tax growing 32 per cent to Dh1.45 billion and ROE [return on equity] of 27 per cent driven by sustained business momentum and a healthy and resilient local economy,” said Chairman Jawaan Awaidah Al Khaili.
Revenue during the period rose to Dh2.5 billion compared to Dh2.0 billion last year, as funded income grew by 19 per cent to Dh1.7 billion compared to Dh1.4 billion last year, driven by higher volumes and better margins, and non-funded income grew by 35 per cent to reach Dh827 million in Q1 2024 versus Dh611 million last year.
Also, non-funded income was aided by 40 per cent growth in fees and commissions, and it's important to note that non-funded income contributed 33 per cent to operating income during the quarter versus 30 per cent last year.
Drop in impairments
"Impairments decreased 25 per cent to Dh109 million for Q1 2024, and non-performing asset ratio improved to 5.5 per cent lowest since Q4 2019 due to active management of our legacy portfolio coupled with strong underwriting standards," the company noted.
Growth in income during the period also ensured cost-to-income ratio improved to 30.4 per cent versus 35.7 per cent in the prior year period. Additionally, customer deposits rose 13 per cent to reach Dh160 billion versus Dh142 billion in Q1 2023 driven mainly by 9 per cent growth in Current and Savings Accounts (CASA) with CASA comprising 66 per cent of total deposits.
Meanwhile, total assets at the end of the period increased 13 per cent to reach Dh195 billion, driven by 8 per cent growth YoY in financing and 25 per cent growth in investments.
