ADIB net profit grow 18% in Q1 2022
Abu Dhabi Islamic Bank reported a year-on-year growth in Net Profit of 18% for the first quarter of 2022 to AED 715 million from AED 608 million in Q1 2021, resulting from solid top-line growth, continued optimization of the cost base and lower impairments.
Revenue for Q1 2022 improved 6% to AED 1,409 million compared to AED 1,336 million last year. This arose from an 12% year-on-year increase in non-funded income to AED 620 million and 1% growth in funded income to AED 789 million, achieved despite the lower rate environment.
Cost discipline was maintained amid ongoing investment in digital initiatives with operating expenses declining 2% year-on-year to AED 577 million and the cost to income ratio improved 3.4 percentage points to 40.9%. Impairments declined 15% year-on-year to AED 113 million for the first quarter of 2022, reflecting an overall improvement in economic conditions. This reduction was achieved while improving the provision coverage of non-performing financing (including collaterals) by 9.2 percentage points to 121.1%.
Total assets increased 6% year-on-year to reach AED 139 billion, driven by 9% growth in gross financing and 18% in investments. Customer deposits rose 8% year-on-year to AED 111 billion from strong Current and Savings Accounts (CASA) and short-term Investments generation. ADIB maintained a robust capital position with a common equity tier 1 ratio of 12.7% and total capital adequacy ratio of 18.1%. Further, the bank's liquidity position was healthy and comfortably within regulatory requirements, with the advances to stable funding ratio at 86.6% and the eligible liquid asset ratio at 16.0%.
