Islamic Finance

Abu Dhabi Islamic Bank reports 8.7 pct rise in profit for 2018


Abu Dhabi Islamic Bank (ADIB) posted an 8.7 percent increase in net profit for the full year 2018, the company reported on Monday.

Abu Dhabi’s biggest Shariah-compliant bank said its Group net profit reached 2.5 billion dirhams ($680 million) in 2018 from 2.3 billion dirhams in 2017.

Group net revenues rose 2.4 percent to 5.8 billion dirhams from 5.6 billion dirhams in 2017.

ADIB attributed the increase in profit to a growth in customer financing and an improvement in provisioning, supported also by higher fee income, controlled operating expenses and improved funding costs.

Customer financing rose 2.8 percent year-on-year to 78.7 billion dirhams at ADIB last year while deposits nudged up slightly by 0.4 percent to 100.4 billion dirhams.

ADIB said its customer base surpassed 1 million last year. The bank finished the year with 1,044,247 active customers.

Vice chairman and acting CEO Khamis Buharoon said the bank’s digital banking platforms have enabled it to attract over 60,000 new customers.

“This has enhanced income sourced from customer financing, which now represents over two-thirds of total revenues,” Buharoon said.

The bank’s total assets as of Dec 31 last year was 125.2 billion dirhams, an increase of 1.6 percent from 123.3 billion at the end of 2017.

The bank’s board recommended a cash dividend of 27.38 fils per share to shareholders.

($1 = 3.6725 Emirati dirhams)

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