Home Banking & Finance ADIB full year net profit rises 45% to AED 5.25 billion

ADIB full year net profit rises 45% to AED 5.25 billion

Net profit for Q4 2023 reached AED 1.5 billion with 29% growth versus Q4 2022

ADIB shareholders approve dividend of 71 fils per share for 2023
ADIB achieved a record return on equity (ROE) of 27.1%, bolstered by a robust and resilient local economy. Image by WAM

Abu Dhabi Islamic Bank (ADIB) reported a growth in net profit of 45% for 2023 to $1.4 billion (AED 5.25 billion) from AED 3.62 billion in 2022, reflecting a consistent trend of strong growth.

Net profit for Q4 2023 reached AED 1.5 billion with 29% growth versus Q4 2022.

Revenue for 2023 improved by 36% to AED 9.3 billion compared to AED 6.8 billion last year due to an excellent income diversification mix and strong growth across all business segments and products.

Funded income grew by 47% to AED 6.1 billion vs AED 4.2 billion last year, driven by higher volumes and better margins. Non-funded income grew by 18% to reach AED 3.2 billion in 2023 versus AED 2.7 billion last year driven by 18% growth in fees and commissions.

Cost to income ratio was managed down with an improvement of 2.0 percentage points to 32.9% versus 34.9% in the corresponding year. This was predominantly driven by growth in Income and enhanced productivity.

Impairments decreased 1% to AED 760 million for 2023. Non-Performing asset ratio improved to 6.1% lowest since Q4 2019 due to active management of legacy portfolio coupled with strong underwriting standards whilst the Coverage ratio (including collaterals) improved by 11.6 percentage points to 139.5%.

Total assets increased 14% to reach AED 193 billion, driven by 6% growth YoY in gross financing and 26% growth in investments.

Customer deposits rose 14% to reach AED 157 billion versus AED 138 billion in 2022 driven mainly by 9% growth in Current and Savings Accounts (CASA) despite the high-rate environment with CASA now comprising 65% of total deposits.