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ADIB net profit increases 10.5pc to $136m in Q2

ABU DHABI, July 22, 2015

Abu Dhabi Islamic Bank (ADIB), a tier one financial services company, has reported a net profit of Dh502.6 million ($136.7 million) for the second quarter of the year, a 10.5 per cent increase from the same period last year.

The number of its customers increased 31.9 per cent, reflecting the continued growth of its main banking activities across all customer segments, said a statement.

The record second quarter financial performance was underpinned by the continued strength of the main banking business across all customer segments in the UAE, it said.

The total assets increased 8.9 per cent year-on-year to Dh115.1 billion, while customer deposits increased 12.7 per cent to Dh89.1 billion and net customer financing grew 14.9 per cent to Dh74.5 billion.

ADIB has achieved steady improvement in overall asset quality levels, with total non-performing accounts as a percentage of gross customer financing reducing to 4.1 per cent as of June 30, from 7.1 per cent a year earlier, said the statement.

Tirad Al Mahmoud, chief executive officer, said: “This has been another good quarter for ADIB as we remain focused on our strategy of delivering value to shareholders and enhancing the banking experience for our customers.

“We are firmly embracing digital technology and will soon be redefining our branches and augmenting our delivery systems to meet the developing needs of our customers. We are also launching an equity capital raising programme which follows a period of expansion for the bank and will support us as we continue on our strong growth trajectory.”

As an early adopter of Basel III requirements, ADIB has maintained its position as one of the most liquid banks in the UAE while simultaneously continuing to manage its cost of funding.

Meanwhile, ADIB shareholders approved a common equity rights issue of Dh504 million during the second quarter and an increase in the bank’s authorisation for issuing sharia-compliant tier-1 capital instruments to $3 billion from the previous limit of $2 billion. - TradeArabia News Service




Tags: increase | profit | Net | ADIB | Q2 |

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