ADIB reports 8.7% profit rise and plans cash dividend
Group net earnings rose to Dh2.5bn for the full-year 2018, UAE lender says
Abu Dhabi Islamic Bank, the emirate’s biggest Sharia-compliant lender, said profits rose by 8.7 per cent year-on-year in 2018, and recommended a cash dividend to its shareholders.
Group net profit increased to Dh2.5 billion compared to Dh2.3bn in 2017, while net revenue rose by 2.4 per cent to Dh5.8bn, ADIB said on Monday.
The board recommended the distribution of a 27.38 per cent cash dividend, representing 39.76 per cent of full-year net profits for 2018.
“Despite increased competition within the UAE banking industry, 2018 has marked another successful year for ADIB in which we have achieved solid revenue and net profit growth,” said Khamis Buharoon, ADIB’s vice-chairman and acting chief executive.
“Our strong performance has allowed ADIB’s board of directors to recommend a cash dividend payout … while still allowing for continued significant reinvestment in the future growth of our businesses.”
The 2018 financial results are subject to approval by the Central Bank of the UAE and, at the time of writing, had not yet been posted on the Abu Dhabi stock exchange, where ADIB’s shares are traded.
Earnings rose in 2018 due to a 21.5 per cent decrease in credit provisions and impairments to Dh620 million, ADIB said.
Customer deposits increased marginally Dh100.4bn from Dh100bn as of the end of December 2017, and loans increased by 2.8 per cent to Dh8.7bn.
Total assets as of December 31, 2018, stood at Dh125.2bn, up 1.6 per cent from the year-earlier period.
A major achievement last year was ADIB’s raising of Dh1bn through a rights issue in October that was five times oversubscribed, attracting more than Dh5bn in orders. The lender also issued a $750m perpetual sukuk that generated $2.1bn in orders.
The successful issuances are “testament to the bank’s prospects for further growth and development”, Mr Buharoon said.
“There is no doubt that credit quality and capital strength lie at the core of our strategic success and in 2019 we will maintain a prudent approach commensurate with our long-term targets for return on shareholder equity,” he added.
Updated: February 4, 2019 07:17 PM