ADIB delivers Dhs1.45b net profit in Q1 2024

ABU DHABI: Abu Dhabi Islamic Bank (ADIB) reported a growth in Net Profit ater tax of 32 per cent for Q1 2024 to Dhs1.45 billion from Dhs1.1 billion in Q1 2023, reflecting a consistent trend of strong growth.

The net profit before tax was Dhs1.64 billion, up 41 per cent versus Q1 2023.

The revenue for Q1 2024 improved by 24 per cent to Dhs2.5 billion compared to Dhs2.0 billion last year due to supported by growth across all business segments and products.

The bank’s funded income grew by 19 per cent to Dhs1.7 billion compared to Dhs1.4 billion last year, driven by higher volumes and beter margins. The non-funded income grew by 35 per cent to reach Dhs827 million in Q1 2024 versus Dhs611 million last year driven by 40 per cent growth in fees and commissions. Non-funded Income contributes 33 per cent to Operating Income versus 30 per cent In Q1 2023.

The cost to income ratio was Improved by 5.3 percentage points to 30.4 per cent versus 35.7 per cent in prior year. This was predominantly driven by growth in Income and enhanced productivity.

The impairments decreased 25 per cent to Dhs109 million for Q1 2024. Non-performing asset ratio improved to 5.5 per cent lowest since Q4 2019 due to active management of our legacy porfolio coupled with strong underwriting standards whilst the Provision Coverage ratio including collaterals improvedby16.0percentagepointsto144.7percent.

The bank’s total assets increased 13 per cent to reach Dhs195 billion, driven by 8 per cent growth YOY in financing and 25 per cent growth in investments.