Islamic Finance

Abu Dhabi Islamic Bank posts 4% rise in profit, assets grow by less than 1%

Abu Dhabi Islamic Bank reported a 4% rise in net profit to 2.601 billion dirhams ($708 million) from 2.501 billion dirhams in 2018.

The bank saw a small 0.6% growth in assets to reach 125.987 billion dirhams from 125.194 billion dirhams in 2018, the company reported in a statement on Abu Dhabi Securities Exchange on Thursday (Feb 13).

This asset growth is lower than the 1.75% registered for the aggregate of UAE’s Islamic banks, according to Salaam Gateway calculation of preliminary data from the central bank.

ADIB’s profit growth was driven by a 3.1% increase in customer financing to 81.1 billion dirhams, a 30.7% rise in investment income to 687 million dirhams, and a 23.6% bump in foreign exchange income to 317.5 million dirhams.

Customer deposits nudged up 1% to 101.404 billion dirhams.

The bank said UAE’s 2020 outlook is “encouraging”, citing the government’s stimulus plans and Expo 2020 that are expected to boost key economic sectors.

“ADIB will continue to invest in areas where we see opportunities for customer growth, particularly through a concerted focus on enhancing our digital banking services,” said the bank.

The bank in late January announced it was changing its presence in the United Kingdom to a non-regulated branch that will focus on developing commercial real estate financing but that will not provide regulated services to customers including current accounts, savings, deposits, and safe deposit boxes.

($1 = 3.6725 dirhams)

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