It was a strong quarter for the Abu Dhabi Islamic Bank. Numbers show that ADIB’s net profit grew 30 percent in the first half of 2022 to Dh1.4 billion from Dh1.1 billion in the year-ago period on solid top-line growth, continued optimisation of the cost base and lower impairments. The bank beat out both international and local analyst expectations.
Profit attributable to shareholders after zakat and tax in April to June period stood at Dh726 million ($197.6m), driven by a 51 percent decline in impairment provisioning charges to Dh114m, the bank said in a statement on Wednesday to the Abu Dhabi Securities Exchange, where its shares are traded. For the first half of the year, the bank reported net profit growth of 30 percent to Dh1.4bn, while operating income rose 7 percent to Dh2.8bn. For the first six months of the year, impairment charges declined 38 percent annually to Dh227m. Customer deposits rose 10 percent year-on-year to Dh115 billion from strong current and savings accounts (CASA).
“ADIB delivered robust year-on-year net profit growth of 30% in the H1 2022 underscored by positive increases in our assets, revenues, and gross financing. Our performance reflects solid momentum across our core businesses under our 2025 growth strategy, and improved macroeconomic conditions” explained Jawaan Awaidah Al Khaili, chairman of ADIB.
Why it matters
The country's economy, the Arab world's second-largest, is set to expand by an annual 5.4 percent this year, driven by its success in containing the health and economic impact of the pandemic, according to the Central Bank of the UAE. The International Monetary Fund projects that the UAE economy will grow 4.2 percent this year.
