Abu Dhabi Islamic Bank (ADIB) has reported a remarkable 24% increase in net profit after tax for the first nine months of 2024, reaching Dh4.6 billion, compared to Dh3.75 billion during the same period last year. This impressive growth is attributed to a robust balance sheet and heightened business momentum, complemented by diversified revenue streams that have significantly bolstered the bank’s financial performance. The net profit before tax surged by 33%, amounting to Dh5.2 billion, while the third quarter of 2024 saw a net profit after tax of Dh1.6 billion, reflecting a sequential increase of 2% and a year-over-year rise of 13%.
In terms of revenue, ADIB experienced a substantial 19% growth, totaling Dh8.0 billion compared to Dh6.7 billion in the previous year. This growth was fueled by strong performance in both financing income and non-funding income, driven by robust business volumes across various segments and products. Specifically, the revenue for Q3 2024 rose by 9% year-on-year to reach Dh2.6 billion. Funded income also saw a healthy increase of 9% YoY, totaling Dh4.9 billion in the first nine months of 2024.
The bank’s non-funded income surged by an impressive 41% YoY to reach Dh3.1 billion, driven primarily by a 33% increase in fees and commissions from diverse product offerings. This segment now contributes significantly to operating income, reflecting ADIB’s strategic focus on revenue diversification. Operating expenses rose modestly by 6% YoY to Dh2.3 billion as the bank continues to invest in technology and personnel.
Moreover, ADIB’s cost-to-income ratio improved significantly, decreasing by 3.6 percentage points to 29.1%. The bank also reported a decrease in impairments by 22%, translating to an annualized cost of risk at just 49 basis points. The non-performing asset ratio improved to its lowest level since Q1 2017 at 4.4%, showcasing effective management of legacy portfolios and strong underwriting standards.
Total assets increased by 15% year-to-date, reaching Dh223 billion, driven by substantial growth in customer financing and an expanding investment portfolio. Customer deposits also rose significantly, reflecting a healthy funding mix and strong market presence. ADIB’s capital position remains robust with a common equity Tier 1 ratio of 13.4%. The bank’s leadership emphasizes its commitment to innovation and market expansion as it positions itself as a key player in the evolving financial landscape.
