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Abu DHABI / Emirates Business
Abu Dhabi Islamic Bank (ADIB)
reported a net profit of AED 989.5 million for the first half of 2016, a year-on-year (YoY) increase of 3.8 percent.
Total assets grew by 5.6 percent YoY to AED 121.5 billion, with customer deposits rising 9.3 percent to AED 97.4 billion, while loans grew by 6.9 percent to AED 79.7 billion.
The bank’s net profit in the second quarter increased 5.3 percent YoY
to AED 507.5 million, it said in a
statement.
Meanwhile, the non-performing loans to gross loans ratio reduced to 4 percent, from 4.1 percent a year earlier, while non-performing coverage ratio improved to 94.1 percent
This reflects the continued growth of ADIB’s main banking activities across all customer segments, particularly its ongoing penetration and targeting of the UAE’s expatriate segment.
ADIB has maintained its position as one of the most liquid banks in the UAE while simultaneously continuing to manage its cost of funding in the current challenging environment. ADIB ended the second quarter with a steady customer financing-to-deposits ratio of 81.8 percent and an advances-to-stable funds ratio of 85.7 percent at 30 June 2016, which remains significantly within the regulatory threshold of 100 percent.
The Group continued its practice of maintaining a conservative position on provisioning, and took an additional AED 253.1 million in total credit provisions to improve non-performing coverage ratio to 94.1 percent of the total non-performing portfolio.
Total Equity (including Tier 1 capital instruments) was AED 15.1 billion as at 30 June 2016. This represents an increase of 9.9 percent compared to the same period last year.
ADIB’s capital adequacy ratio under Basel II now stands at 14.6 percent and Tier 1 capital ratio at 14.0 percent, well above the UAE Central Bank’s prescribed minimums of 12 percent and 8 percent respectively.
The Group has continued to invest in infrastructure to improve the banking experience for its customers by delivering best-in-class banking services and become the UAE’s leading digital bank.