The increase in profitability was supported by a 6.3 per cent growth in net revenues Q2 2019 to AED 1,451 million, owing to the resilient performance of the bank’s core businesses.
Sunday 28, July 2019 BY KUDAKWASHE MUZORIWA
Abu Dhabi Islamic Bank (ADIB) posted a net profit of AED 630.1 million in Q2 2019, a 10 per cent increase compared to the same period in Q2 2018.
The Shari’ah compliant lender stated that growth was supported by a 3.4 per cent increase in net customer financing, which stood at AED 78.9 billion in Q2 2019 as well as increased foreign exchange and investment income.
Additionally, ADID’s investment income increased 30.8 per cent to AED 161.9 million as foreign exchange revenue increased to AED 71.1 million, a 20.8 per cent growth.
The bank’s reported a total equity of AED 17.8 billion in H1 2019, a 7.8 per cent increase compared to the same period last year leading to a solid capital position with an 18.3 per cent capital adequacy ratio under Basel III in Q2, while ADIB’s Tier 1 capital ratio was at 17.2 per cent and its common equity Tier 1 ratio stood at 12.5 per cent.
Mazin Manna, ADIB Group’s CEO, said, “During the first half of 2019 we generated considerable momentum across all divisions which position us very well for the rest of the year, this was driven by higher revenues on the back of a growth in customer financing, as well as increased foreign exchange and investment income.”
In a statement, ADIB said that the bank continued to advance its digitisation agenda with ongoing enhancements of the mobile app including the pioneering ‘Express Finance’ service, which provides qualifying customers with instant access to personal finance.