Abu Dhabi Islamic Bank Q2 2019 net profit up 10 pct YoY, assets down from 2018
Abu Dhabi Islamic Bank’s net profit after zakat and tax for the three months ending June 30 rose 10 per cent to 630.1 million dirhams ($171.6 million) compared to the same period a year ago, the company reported on Wednesday.
Net profit for the first half of 2019 was up by 5.8 per cent year-on-year to 1.2305 billion dirhams.
ADIB said the increase in profitability was supported by a 6.3 per cent year-on-year growth in net revenues during the second quarter to 1.450.5 billion dirhams, driven by a 3.4 per cent growth in net customer financing to 78.9 billion dirhams.
Non-financing income also rose on the back of higher foreign exchange income, which was up 20.8 per cent to 71.1 million dirhams in the second quarter of 2019, and a 30.8 per cent rise in investment income to 161.9 million dirhams.
However, credit provisions and impairments for the six months ending June 30 went up by 9.4 per cent to 345 million compared to the first half of 2018.
“We registered a 6.7 per cent growth in operating profit (margin),” Mazin Manna, ADIB Group CEO said in a statement.
“Cost discipline initiatives were partially offset by investments in digital and strategic initiatives in order to support future business growth and improvements in the customer experience,” he added.
The bank has “invested heavily” in new technology in the first half of this year, said Manna.
ADIB recently announced an agreement with Bahrain-headquartered Al Baraka Banking Group for a correspondent banking arrangement using its digital platform ADIB Direct.
ASSETS DIP
The UAE bank’s assets dipped 0.4 per cent to 124.7 billion dirhams for the first half of this year from 125.2 billion dirhams at December 31, 2018.
However, the 124.7 billion dirhams is up 1.4 per cent for the same period year-on-year.
ADIB is the UAE’s second largest standalone Islamic bank by assets, trailing Dubai Islamic Bank that reported 228.2 billion dirhams in assets for the period ending June 30.
($1 = 3.6725 dirhams)
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