Monday 19 February 2018
 
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REVENUES JUMP 4.6pc

ADIB posts record $626m profit for 2017

ABU DHABI, 14 days ago

Abu Dhabi Islamic Bank (ADIB) today reported a record net profit of Dh2.3 billion ($626.2 million) for the year ended December 31, 2017, up 17.7 per cent from 2016, driven by higher income from fees, foreign exchange, investments and reduction in the cost of credit. 
 
The net profit for Q4 2017 increased by 33.4 per cent to Dh607.2 million compared to Dh455.1 million in Q4 2016.
 
Revenue increased by 4.6 per cent to Dh5.6 billion ($1.524 billion), while the bank also benefited from lower credit provisions and impairments in 2017 decreasing by 18.5 per cent from a year earlier. 
 
The net revenues for Q4 2017 increased by 6.2 per cent to Dh1.428 billion compared to Dh1.344 billion in Q4 2016.
 
The bank’s board of directors has recommended the distribution of 28.87 per cent cash dividend for 2017. The cash dividends represent 39.76 per cent of full-year net profit for 2017. 
 
Other financial Highlights 
• Credit provisions and impairments decreased by 18.5 per cent Y-O-Y to Dh790.4 million vs Dh970 million in 2016.
• Total assets at Dh123.3 billion was up 0.8 per cent from Dh122.3 billion at the end of 2016 (and an increase of 1.7 per cent from Dh121.3 billion at September 30, 2017). 
• Net customer financing decreased by 2.1 per cent to Dh76.5 billion, from Dh78.2 billion at the end of 2016 (and decreased 0.4 per cent from Dh76.8 billion as at September 30, 2017).
• Customer deposits grew 1.2 per cent to Dh100 billion, from Dh98.8 billion at the end of 2016 (an increase of 0.9 per cent from Dh99.1 billion at September 30, 2017). 
• Non-performing assets ratio stood at 5.4 per cent with non-performing assets totalling Dh4,299.1 million as at December 31, 2017.
 
Khamis Buharoon, ADIB vice chairman and acting CEO, said: “We had a great year in 2017, with net profit rising nearly 18 per cent to Dh2.3 billion. ADIB experienced robust growth across our businesses, while we maintained a disciplined approach to cost and risk management. During the year, we welcomed approximately 62,000 new customers with a strong offering of products and services, easily accessed through digital platforms. The solid performance has permitted ADIB’s Board of Directors to recommend a cash dividend payout of 39.76% of the year’s net profit, while still allowing for continued significant reinvestment in the future growth of our businesses.
 
 “In 2017, we accelerated our investment in digital banking and finding new ways to add value to our customers. Our digital and innovation agenda is about enhancing the customer experience, making it simpler, faster and more cost-effective to access high-quality financial services, while ensuring that customers continue to receive a highly personalised service. 
 
“Despite heavy investment in advancing our digital capabilities, we demonstrated a strong expense discipline with the cost-to-income ratio decreasing by 1.0% when compared to 2016. This is in line with management targets and it will enable us to invest further to support our future growth,” he said.
 
“The financial discipline we exercised over the years, by prudently managing risk and credit extension, has ensured that our balance sheet remains strong. It is pleasing to note that the stabilisation of the business environment, together with our focus on asset quality, has led to higher recoveries and an 18.5% decrease in impairment allowances from last year.”
 
 “Looking ahead, we believe ADIB is well positioned to take advantage of the opportunities that are expected to arise from the positive economic outlook of the UAE. We are confident that our financial strength and our focus on leveraging innovation and providing a high-quality banking experience will help us attract more customers and deliver long-term shareholder value.” – TradeArabia News Service
 

 




Tags: abu dhabi | Bank | ADIB |

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