Abu Dhabi Islamic Bank, ADIB, Group has reported a 2.9% increase in net profit for the first nine months of 2016 to AED1,498.4 million while increasing total assets to AED122.6 billion.

The bank now has over 903,000 customers, having added 48,000 new customers in the year to the third quarter, thanks to a competitive product offering 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.

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."

ADIB has maintained its position as one of the most liquid in the UAE. Its customer financing-to-deposits ratio stands at 79.7 percent, and its capital adequacy ratio under Basel II was 15.0 percent as at September 30th, up from 14.7 percent a year earlier. Total equity, including Tier 1 capital instruments increased 6.0 percent year on year to AED 15.6 billion at the end of September.

As the bank increased customer numbers, its net customer financing grew by 1.8 percent to AED78.6 billion at the end of September, with total assets up 4.8 percent to AED122.6 billion. Customer deposits increased 10.3 percent year on year to AED 98.6 billion.

Net revenues increased by 6.6 percent year-on-year to AED1.37 billion. The bank's focus on greater efficiency and productivity resulted in the cost-to-income ratio improving to 43.0 percent in the third quarter, from 45.6 percent a year earlier.

With ADIB's non-performing loan ratio increasing marginally to 4.4 percent at the end of September, from 4.0 percent a year earlier, ADIB has continued its conservative approach on provisioning. The bank took an additional AED287.3 million in specific provisions during the third quarter. 

We accept Guest Posts

Download the Dubai City Guide iPhone mobile app

DubaiCityGuide.com is owned and managed by Cyber Gear