Banking, Finance & Takaful

Abu Dhabi Islamic Bank Q3 net profit up 20.4 per cent

adib_logoThe Abu Dhabi Islamic Bank (ADIB) Group posted a 20.4 per cent increase in net profit of AED 395.5 million for Q3 2013.

Tirad Al Mahmoud, CEO of ADIB, said, “I am pleased that ADIB’s vision of becoming a top-tier regional bank is firmly on track, as demonstrated by the 18.2 per cent year-on-year growth of our total assets, which now stands at AED 96.4billion,and a 20.4 per cent increase in net profit of AED 395.5 million for Q3 2013 over the same period last year.

Equally pleasing is that this performance is underpinned by a clear commitment to excellence in customer service and it is a matter of great pride that ADIB was recognized for the third consecutive year as the best bank in the UAE for customer service. This continued focus on a customer-centric strategy across an increasing number of segments and markets, combined with our now established ability to optimize capital and manage funding, enabled ADIB to grow its net customer financing assets by 15.0 per cent in the first nine months of 2013. This growth, which is well above the market average, reinforces ADIB’s status as a top-tier UAE bank and emerging regional player.

“Not withstanding the growth in our net customer financing assets, ADIB continued to demonstrate its strong liquidity capabilities by improving the advances to stable funds ratio to 79.0 per cent at 30 September 2013. Most notably, our focus on building current and savings accounts saw their combined balances grow by 22.3 per cent year-on-year and these now represent 53.3 per cent of total deposits. The overall result is that we not only meet the new Basel III based liquidity ratios but our deposit concentration risk also continues to decline.

“With regards to provisioning, we continued our prudent practices and added a further AED 193.5million in total credit provisions and impairments during Q32013,while maintaining our collective provisions well above the Central Bank guidelines of 1.5 per cent.

Since 2008, the total credit provisions and impairments taken by the Group amount to AED 4,840.0 million. Despite the positive outlook we have on the UAE economy and therefore on new customer and financing asset growth, we remain cautious about any recovery in the non-performing credit environment relating to our legacy portfolio. We fully intend to continue our diligent approach to both the recognition and the provisioning and recovery management of remedial accounts.”

Source: CPI Financial

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