Abu Dhabi Islamic Bank’s Q3 profit rises 5.2% on higher revenue
Profit for the three month period climbs to Dh620 million as revenue rises 5.5% to Dh1.5bn
Abu Dhabi Islamic Bank, the emirate’s biggest Sharia-compliant lender, reported a 5.2 per cent increase in third-quarter net profit due to higher revenues.
Net profit attributable to equity holders for the three months to the end of September rose to Dh620 million, the bank said in a statement to the Abu Dhabi stock exchange, where its shares trade. Revenues for the reporting period climbed 5.5 per cent year-on-year to Dh1.5 billion and operating income margin grew 8.7 per cent to 828.9m. The bank’s credit provisions and impairments for the third quarter rose about 21 per cent to Dh207.5m from an year ago.
“Our growth in revenues has been complemented by our discipline in managing costs and risk which saw the cost to income ratio decrease 1.6 per cent year on year,” said Mazin Manna, ADIB Group chief executive said in a statement.
“We have implemented a number of savings initiatives that have controlled operating expenses without compromising our performance or quality of service.”
Financial benefits of the programme have been partially offset by investments in new digital and strategic initiatives that the bank is implementing to attract new customers and support the future growth of the bank, he added.
Group net profit for the first nine months of 2019 increased 5.6 per cent year-on-year to Dh1.8bn, while net revenues rose 5.7 per cent to Dh4.3bn.
Total assets as of September 30, 2019 were Dh124.3bn, with no change on the Dh124.3bn reported at the end of September 30, 2018. In the first nine months of 2019, customer deposits increased 1.9 per cent to Dh100.4bn from an year ago.
Updated: November 10, 2019 10:50 AM