Abu Dhabi Islamic Bank (ADIB) has announced its financial results for the first half of 2023, revealing a remarkable 61% increase in net profit, which surged to AED 2.3 billion compared to AED 1.4 billion in H1’22. The bank’s Q2’23 net profit reached AED 1.2 billion, marking a significant 68% growth compared to Q2’22.
In H1’23, the bank’s revenue showed substantial improvement, growing by 50% to reach AED 4.3 billion, up from AED 2.8 billion in the previous year. This impressive growth can be attributed to an excellent income diversification mix and strong performance across all business segments and products. Funded income saw a remarkable 75% increase, reaching AED 2.9 billion, while non-funded income also grew by 14% to AED 1.3 billion, primarily driven by a 15% rise in fees and commissions.
Furthermore, ADIB managed to improve its cost-to-income ratio, which decreased by 7.0 percentage points to 33.9% in H1’23, compared to 40.9% in the corresponding period last year. The bank’s total assets also witnessed significant growth, increasing by 28% to AED 182 billion, with gross financing rising by 18% and investments growing by 22%. Customer deposits played a key role in this growth, rising by 31% to AED 150 billion in H1’23 from AED 115 billion in H1’22.
“ADIB reported a record performance in the first half of 2023, delivering net profit of AED 2.3 billion, record revenue of AED 4.3 billion, which equates to an average return on equity of 25 percent reflecting the success of the Group’s diversified business model and a healthy regional economy. Our ability to deliver strong business momentum is the result of our solid capital position, prudent risk management, diversified business lines and nimble execution of our strategy underpinned by an on-going digital and innovation strategy,” ADIB Chairman Jawaan Awaidah Al Khaili said. “We have benefited from strong deposit inflows and grew our market share by attracting approximately 96,000 new customers to ADIB in the first half of 2023 emphasising the strength of our brand.”
Nasser Abdulla Al Awadhi, ADIB’s Group Chief Executive Officer, commented, “ADIB has delivered another strong set of results in the first half of 2023 with net profit up 61 percent year-on-year driven by 50 percent growth in revenues on the back of increased transaction volumes and improved margins led by an efficient funding base and higher yields. Both our Retail and Corporate Businesses have performed well with high quality income growth and double-digit returns.
“The momentum across the Group allows us to maintain a robust capital position and deliver attractive high returns to shareholders.”