Abu Dhabi Islamic Bank first-quarter profit plunges 55% as credit provisions and impairments soar
Abu Dhabi Islamic Bank on Sunday (May 10) reported first-quarter Group net profit of 269.69 million dirhams ($73.44 million) compared to 600.34 million dirhams for the same period last year, a plunge of 55.08%.
The bank said in a filing with the Abu Dhabi Securities Exchange the drop was driven by an increase in provisioning “due to the challenging operating environment, as well as the result of lower revenues, given unprecedented market conditions.”
“Our profits in the first quarter of 2020 have been impacted by the challenging macro-economic environment caused by the COVID-19 pandemic and lower revenue due to rate cuts. Given the uncertain economic outlook we increased our impairment allowances and our provisioning in anticipation of a potential deterioration in credit quality,” said Group CEO Mazin Manna in a statement.
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