Adib net profit up 55% to Dh3.62b

Board recommends dividend of 49 fils per share compared to 31 fils in 2021

Abu Dhabi Islamic Bank achieved a record net profit of Dh3.62 billion for the full year of 2022, up 55 per cent from the previous year, suggesting a consistent trend of strong growth and profitability in 2022.

Adib also reported the highest quarterly net profit of Dh1.2 billion in Q4 2022 versus Dh728 million in Q4 2021, marking a 60 per cent growth versus the same period last year.

The bank’s board has recommend a dividend of 49 fils per share compared to 31 fils in 2021.

In 2022, revenue improved by 23 per cent to Dh6.84 billion compared to Dh5.56 billion last year. This was driven by a 43 per cent increase in fees and commissions and 24 per cent growth in funded income to Dh4.15 billion, achieved from the growth in customer financing and higher margins.

‘Unprecedented year’

“2022 was an unprecedented year for Adib as we delivered a record performance of Dh3.62 billion for the first time in our history. Our team’s relentless efforts and unwavering commitment to excellence helped us achieve these results, setting a new standard for success. Our initiatives to diversify our income, expand into new segments while managing asset quality served us well to deliver a ROE of 21.4 per cent. This has allowed the Board to recommend a dividend of 49 fils per share compared to 31 fils in 2021,” said Chairman Jawaan Awaidah Al Khaili.

Ongoing investments

Cost to income ratio was managed down with an improvement of 5.7 percentage points to 34.9 per cent. This was achieved despite slightly higher cost that increased 6 per cent year-on-year to Dh2.39 billion reflecting ongoing investments in strategic and digital initiatives.

Impairments declined 19 per cent year-on-year to Dh769 million for 2022, reflecting an overall improvement in economic conditions. This reduction was achieved while improving the provision coverage of non-performing financing (including collaterals) by 7.9 percentage points to 127.9 per cent.

Total assets increased 23 per cent year-on-year to reach Dh169 billion.