ADIB 9-month profits rise on improvement in provisioning
dubai — Abu Dhabi Islamic Bank (ADIB) on Monday said its 9-month net profits this year grew 3.5 per cent to Dh1.75 billion as compared to Dh1.69 billion for the same period last year, helped by a growth in customer financing and an improvement in provisioning
But revenues for first nine months of 2018 decreased by 1.2 per cent to Dh4.154 billion as against Dh4.2 billion in first nine months of 2017. Credit provisions and impairments decreased 22 per cent to Dh487 million from Dh623.4 million during the comparative period.
Khamis Buharoon, vice-chairman and acting CEO, ADIB, said net profit in third-quarter increased 4.5 per cent to Dh589.5 million and total assets reached Dh124.3 billion, representing an increase of 2.5 per cent compared to the same period last year.
“The UAE economy has proven resilient in recent years, and the ongoing investment in diversification will provide opportunity for Adib to develop all its corporate and retail banking businesses in the coming years. There is no doubt that credit quality and capital strength lie at the core of our strategic success. Therefore, we will continue to ensure that new credit extension is done in such a manner that the risk related returns are commensurate with our long-term targets for return on shareholder equity,” said Buharoon. In October, the lender raised Dh1 billion through rights issue to support the growth strategy while boosting its core capital. The rights issue generated interest across a diversified local investor base and was approximately 5 times oversubscribed.
The Islamic lender’s third-quarter 2018 revenues also increased 0.2 per cent to Dh1.425 billion. Credit provisions and impairments for Q3 2018 decreased by 29.2 per cent to Dh171.7 million versus Dh242.7 million for Q3 2017.
Total assets as of September 30, 2018 were Dh124.3 billion, representing an increase of 2.5 per cent from Dh121.3 billion at September 30, 2017.
Customer deposits decreased slightly by 0.6 per cent to Dh98.5 billion, from Dh99.1 billion at September 30, 2017.
The ongoing investment in diversification will provide opportunity for Adib to develop all its corporate and retail banking businesses in the coming years
Khamis Buharoon,
Vice-chairman and acting CEO, ADIB