ADIB continued its strong financial performance in Q1 2024

Abu Dhabi Islamic Bank reported a growth in Net Profit after tax of 32% for Q1 2024 to AED 1.45 billion from AED 1.1 billion in Q1 2023, reflecting a consistent trend of strong growth. Net profit before tax was AED 1.64 billion, up 41% versus Q1 2023.

Revenue for Q1 2024 improved by 24% to AED 2.5 billion compared to AED 2.0 billion last year due to supported by growth across all business segments and products.

Funded income grew by 19% to AED 1.7 billion compared to AED 1.4 billion last year, driven by higher volumes and better margins. Non-funded income grew by 35% to reach AED 827 million in Q1 2024 versus AED 611 million last year driven by 40% growth in fees and commissions. Non-funded Income contributes 33% to Operating Income versus 30% In Q1 2023.

Cost to income ratio was Improved by 5.3 percentage points to 30.4% versus 35.7% in prior year. This was predominantly driven by growth in Income and enhanced productivity.

Impairments decreased 25% to AED 109 million for Q1 2024. Non-Performing asset ratio improved to 5.5% lowest since Q4 2019 due to active management of our legacy portfolio coupled with strong underwriting standards whilst the Provision Coverage ratio including collaterals improved by 16.0 percentage points to 144.7%.

Total assets increased 13% to reach AED 195 billion, driven by 8% growth YoY in financing and 25% growth in investments.

Customer deposits rose 13% to reach AED 160 billion versus AED 142 billion in Q1 2023 driven mainly by 9% growth in Current and Savings Accounts (CASA) with CASA comprising 66% of total deposits.

ADIB maintained a robust capital position with a Common Equity Tier 1 ratio of 12.6% and a 
total Capital Adequacy Ratio of 17.2%. The bank’s liquidity position was healthy and within regulatory requirements, with the advances to stable funding ratio at 76.6% and the eligible liquid asset ratio at 20.3%.

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