Abu Dhabi Islamic Bank (ADIB) reported a growth in Net Profit after tax of 32 percent for Q1 2024 to AED1.45 billion from AED1.1 billion in Q1 2023, reflecting a consistent trend of strong growth.

The net profit before tax was AED1.64 billion, up 41 percent versus Q1 2023.

The revenue for Q1 2024 improved by 24 percent to AED2.5 billion compared to AED 2.0 billion last year due to supported by growth across all business segments and products.

The bank's funded income grew by 19 percent to AED1.7 billion compared to AED1.4 billion last year, driven by higher volumes and better margins. The non-funded income grew by 35 percent to reach AED827 million in Q1 2024 versus AED 611 million last year driven by 40 percent growth in fees and commissions. Non-funded Income contributes 33 percent to Operating Income versus 30 percent In Q1 2023.

The cost to income ratio was Improved by 5.3 percentage points to 30.4 percent versus 35.7 percent in prior year. This was predominantly driven by growth in Income and enhanced productivity.

The impairments decreased 25 percent to AED 109 million for Q1 2024. Non-Performing asset ratio improved to 5.5 percent lowest since Q4 2019 due to active management of our legacy portfolio coupled with strong underwriting standards whilst the Provision Coverage ratio including collaterals improved by 16.0 percentage points to 144.7 percent.

The bank's total assets increased 13 percent to reach AED 195 billion, driven by 8 percent growth YoY in financing and 25 percent growth in investments.

The customer deposits rose 13 percent to reach AED 160 billion versus AED 142 billion in Q1 2023 driven mainly by 9 percent growth in Current and Savings Accounts (CASA) with CASA comprising 66 percent of total deposits.

ADIB maintained a robust capital position with a Common Equity Tier 1 ratio of 12.6 percent and a total Capital Adequacy Ratio of 17.2 percent. The bank’s liquidity position was healthy and within regulatory requirements, with the advances to stable funding ratio at 76.6 percent and the eligible liquid asset ratio at 20.3 percent.

Jawaan Awaidah Al Khaili, Chairman of ADIB, said, “Building on a record year in 2023, we started 2024 on a strong note with net profit after tax growing 32 percent to AED1.45 billion and a return on equity of 27 percent reflecting the healthy and resilient local economy coupled with our focus on sustaining business momentum and delivering transformational initiatives.

“By leveraging our technology and continuous investment in digital and putting customers at the center of everything we do, we have successfully deepened our relationships with our customers and expanded our customer base across all our businesses adding 46,000 new customers in the first quarter of 2024 bringing the total number of customers to 1.311 million."

Mohamed Abdelbary, Acting Group Chief Executive Officer of ADIB, added, “We had a very successful start into 2024 as we continued to see healthy underlying growth across all our businesses. Our progress was remarkable across all indicators and was driven by positive business growth, cost and risk discipline, and our ability to maintain a sound balance sheet foundation, including a solid capital position and a very strong liquidity profile.”