Quar­terly rev­enues lift Abu Dhabi Is­lamic Bank

The National - News - - BUSINESS - FA­REED RAH­MAN

Abu Dhabi Is­lamic Bank, the emi­rate’s big­gest Sharia-com­pli­ant lender, re­ported a 5.2 per cent in­crease in third-quar­ter net profit thanks to higher rev­enues.

Net profit at­trib­ut­able to eq­uity hold­ers for the three months to the end of Septem­ber rose to Dh620 mil­lion, the bank said in a state­ment to the Abu Dhabi stock ex­change, where its shares trade. Net rev­enue for the pe­riod climbed 5.5 per cent year-on-year to Dh1.5 bil­lion and op­er­at­ing in­come mar­gin grew 8.7 per cent to 828.9m. The bank’s credit pro­vi­sions and im­pair­ments for the quar­ter rose about 21 per cent to Dh207.5m.

“Our growth in rev­enues has been com­ple­mented by our dis­ci­pline in man­ag­ing costs and risk which saw the cost-to-in­come ra­tio de­crease 1.6 per cent year on year,” said Mazin Manna, ADIB Group chief ex­ec­u­tive.

“We have im­ple­mented a num­ber of sav­ings ini­tia­tives that have con­trolled op­er­at­ing ex­penses with­out com­pro­mis­ing our per­for­mance or qual­ity of ser­vice.”

Fi­nan­cial ben­e­fits of the pro­gramme have been par­tially off­set by in­vest­ments in new dig­i­tal and strate­gic ini­tia­tives to at­tract new cus­tomers and sup­port the fu­ture growth of the bank, he added.

Group net profit for the first nine months of 2019 in­creased 5.6 per cent year-onyear to Dh1.8bn, while net rev­enue rose 5.7 per cent to Dh4.3bn.

To­tal as­sets as of Septem­ber 30, 2019, were Dh124.3bn, with no change on the Dh124.3bn re­ported at the end of Septem­ber 30, 2018. In the first nine months of 2019, cus­tomer de­posits in­creased 1.9 per cent to Dh100.4bn from a year ago.

We have im­ple­mented a num­ber of sav­ings ini­tia­tives that have con­trolled op­er­at­ing ex­penses

MAZIN MANNA Adib Group CEO

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