Board of Directors Report for 3^rd quarter of Year 2005

ADIB’s Profits Reflects Strong Performance and Remarkable Growth in Assets and Deposits

The total assets have grown up to AED 22.5 Billion at the end of the 3^rd quarter of the year 2005 with 108% growth rate as compared to the same period of year 2004.

Customer deposits grew to reach AED 18.3 Billion by the end of the 3^rd quarter of 2005 compared to AED 8.4 Billion in the 3^rd quarter of 2004, with a growth of 118%.

Operating income increased by 277 % to record AED 930 million in the 3^rd quarter of 2005 compared to AED 247 million for the 3^rd quarter of 2004. Revenues from Murabaha, Mudaraba, Istisnaa and Ijara transactions constituted 93% of total revenues compared to 80% in the 3^rd quarter of 2004. Income from fees and commissions constituted 3.3% of total revenues compare to 7.2 % for the 3^rd quarter of 2004. On the other hand, operating expenses amounted to AED 224 million for the 3^rd quarter of 2005 with, an increase of 90% over the 3^rd quarter of 2004.

Abu Dhabi Islamic Bank’s net profit for the 3^rd quarter grew to AED 238.3 Million, with an increase of 207% over the AED 77.5 Million profits reported at the end of the 3^rd quarter of 2004.

ADIB expects further success in the results through the rest of <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />2005 in all areas including deposits, financing, assets and profits.