Adib net profit jumps 55% to AED3.62 billion in 2022

Abu Dhabi / Agencies

Abu Dhabi Islamic Bank (Adib) announced a net profit of AED3.62 billion in 2022, a 55% increase from the previous year. The bank also reported a 60% growth in Q4 2022 with a net profit of AED1.2 billion, compared to AED728 million in Q4 2021. Adib’s revenue increased by 23% to AED6,835 million in 2022, driven by a 43% increase in fees and commissions and a 24% growth in funded income.
The chairman of Adib, Jawaan Awaidah Al Khaili, said the results will allow the bank to invest and grow, while supporting the national economy and UAE’s sustainability agenda.
“2022 was an unprecedented year for Adib as we delivered a record performance of AED3.62 billion for the first time in our history. Our team’s relentless efforts and unwavering commitment to excellence helped us achieve these results, setting a new standard for success. Our initiatives to diversify our income, expand into new segments while managing asset quality served us well to deliver a ROE of 21.4%. This has allowed the board to recommend a dividend of 49 fils per share compared to 31 fils in 2021,” Al Khaili said.
The CEO, Nasser Al Awadhi, added that the bank will continue to invest in growth and transformation to deliver sustainable returns to shareholders.
“This has been an extraordinary year for Adib as we
delivered record-breaking perfomance across all matrix, extending the robust operational performance that Adib has delivered throughout this year. We have seen a broad-based income momentum across all of our operating businesses where we continue to gain market share which has put us in good stead to deliver one of the highest returns on equity in the market of 21.4%,” said Al Awadhi.
Cost to income ratio was managed down with an improvement of 5.7 percentage points to 34.9%. This was achieved despite slightly higher cost that increased 6% year-on-year to AED2,387 million reflecting ongoing investments in strategic and digital initiatives.
Impairments declined 19% year-on-year to AED769 million for 2022, reflecting an overall improvement in economic conditions. This reduction was achieved while improving the provision coverage of non-performing financing (including collaterals) by 7.9 percentage points to 127.9%.
Total assets of the bank increased 23% year-on-year to reach AED169 billion, driven by 22% growth in gross financing and 42% growth in investments.
Customer deposits rose 26% year-on-year to reach AED138 billion driven mainly by a 14% growth in current and savings accounts (Casa) despite the high rate environment.
The Abu Dhabi Islamic Bank maintained a robust capital position with a common equity Tier 1 ratio of 12.08% and a total capital adequacy ratio of 17.17%, after adjusting for proposed dividend for 2022. The bank’s liquidity position was healthy and comfortably within regulatory requirements, with the advances to stable funding ratio at 82.1% and the eligible liquid asset ratio at 18.9%.