Abu Dhabi Islamic Bank (ADIB) Group’s net profits for the nine months, ending on September 30, 2016, rose 2.9% to Dh1.498 billion while the total assets went up to Dh122.6, the bank announced in a press release.
The bank has over 903,000 customers – it added 48,000 new customers during the current year due to its competitive products and strong investments in its digital platforms. ADIB recently launched a digital-only bank in partnership with Fidor Bank of Germany aimed at young ‘Gen Y’ customers, which will allow it to provide efficient and personalised solutions to meet the changing needs of its customers.
ADIB has maintained its position as one of the most liquid in the UAE. Its customer financing-to-deposits ratio stands at 79.7%, and its capital adequacy ratio under Basel II was 15% as on September 30, up from 14.7% a year earlier. Total equity, including Tier 1 capital instruments increased 6.0% year-on-year to Dh15.6 billion at the end of September.
As the bank increased customer numbers, its net customer financing grew by 1.8% to Dh78.6 billion at the end of September, with total assets up 4.8% to Dh122.6 billion. Customer deposits increased 10.3% year-on-year to Dh98.6 billion.
Net revenues increased by 6.6% year-on-year to Dh1.37 billion. The bank’s focus on greater efficiency and productivity resulted in the cost-to-income ratio improving to 43% in the third quarter, from 45.6% a year earlier.
With ADIB’s non-performing loan ratio increasing marginally to 4.4% at the end of September, from 4.0% a year earlier, ADIB has continued its conservative approach on provisioning. The bank took an additional Dh287.3 million in specific provisions during the third quarter.
Collective provisions now represent 2.23% of total customer risk weighted assets, well above the 1.5% regulatory guidelines.
ADIB is further enhancing its strategic positioning as one of the top retail banks in the UAE, with a network of 88 branches, 780 ATMs and market leading mobile and internet banking platforms.
Through its investment in digital technology, the bank is launching new products and services such as mobile apps for both retail and corporate customers and launching a new digital bank for ‘Gen Y’ customers in the 18 to 30 age group.
Tirad Al Mahmoud, Chief Executive Officer of ADIB, said, “ADIB continues to grow market share, net revenues and customer numbers, achieving a solid financial performance. The bank has taken a prudent view on credit extension and capital management, while continuing our conservative practice of building provisions, given the ongoing challenging global economic environment.
“We are investing strongly in areas that will help achieve further growth in the future, including in particular customer experience and our digital platforms. The recent launch of a digital-only bank aimed at the young ‘Gen Y’ customers puts us at the forefront of innovation in the UAE banking sector and will allow us to provide efficient and personalized solutions that meet the changing needs of our growing customer base.”
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