Abu Dhabi Islamic Bank Q1 revenues rise 5.3%

ABU DHABI / WAM

Abu Dhabi Islamic Bank (ADIB) reported a net profit growth of 1.7 percent for Q1 2019 to AED 600.3 million. Revenues increased by 5.3 percent to AED1,436.6 million driven by growth in customer financing of 2.8 percent to AED 78.1 billion, and a 57.5 percent rise in investment income, which reached AED 185.3 million, in addition to an increase of 29.6 percent in foreign exchange income. The bank maintained a conservative approach to risk as total credit provisions reached AED 186.4 million.
According to financial results for Q1, the capital adequacy ratio under Basel III on March 31, 2019 was 17.53 percent vs 16.02 percent on March 31, 2018, (December 31, 2018 was 17.18 percent, after adjusting for the 2018 dividend).
ADIB remains one of the most liquid banks in UAE, with advances to stable funds ratio (a regulatory ratio) of 82.4 percent on March 31, 2019, vs 80.4 percent on March 31, 2018 and an advances to deposits ratio of 77.7 percent on March 31, 2019, vs 74.4 percent on March 31, 2018.
Mazin Manna, ADIB CEO, said: “The operating performance for the first quarter of 2019 was on track with operating profit increasing 6.2 percent, delivering a solid return on equity of 18.3 percent, which is considered one of the highest in market. This was driven by higher revenues on the back of a growth in customer financing, increased foreign exchange and investment income.”