ADIB Egypt reports $76.3m in net profit during 2020

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The Abu Dhabi Islamic Bank (ADIB) Egypt has announced its consolidated financial results for the fiscal year (FY) ending 31 December 2020, reporting EGP 1.196bn in net profit.

The results also revealed positive results despite the many economic challenges caused by the novel coronavirus (Covid-19) pandemic, over the last year.

The bank’s 2020 net profit reflected a 3% decrease of EGP 32m compared to the EGP 1.228bn recorded in 2019. Meanwhile, the net standalone profit reached EGP 1.151bn, compared to EGP 1.103bn in 2019, reflecting a 4% increase of EGP 49m.

The bank’s most prominent financial indicators also revealed total revenues growth of 1.3%, reaching EGP 3,786bn. Total assets increased by 22.5% to reach EGP 73.9bn in 2020, compared to EGP 60.3bn in 2019. The bank succeeded in attracting new deposits, as its balance of deposits increased by 22.5% to reach EGP 62.7bn. Net financing increased by 30% reaching EGP 40.2bn in December 2020.

The rise in the net finance portfolio is due to both a growth of 29.7% in corporate finance to reach EGP 28.7bn, as well as a 30.7% rise in retail banking to reach EGP 11.5 bn. The rise in deposits was driven by the growth of corporate deposits by about 26%, or EGP 23.3bn, and the increase of individual deposits portfolio by about 20% to reach EGP 39.3bn. The treasury unit also achieved growth in liquidity surplus management, with the assets under management portfolio increasing by EGP 3.8bn, or 17.7%, to reach EGP 25.3bn in 2020.

On the other hand, net profit from fees and commissions recorded an increase of EGP 49m, or 12%, compared to the previous year, reaching EGP 452m by the end of 2020.

Meanwhile, forex revenues decreased by EGP 37.8m or 17% from the previous year to reach EGP 182m.

Provisions increased by EGP 38.1m to reach EGP 445m, compared to EGP 407m, an increase of 9% compared to 2019 Commenting on these results, Mohammed Aly, CEO and Managing Director of ADIB-Egypt, said, “Our 2020 financial results demonstrate the bank’s ability to maintain financial stability even in the face of a global economic downturn which the financial sector faced due to the pandemic.”

He added, “We have demonstrated both flexibility and adaptability, quickly adjusting to market dynamics and developments in the working environment, to continue supporting the Egyptian economy and its customers in response to the Central Bank of Egypt (CBE) initiatives.

” The bank believes that these initiatives and programmes ensure the continued safety and resilience of the Egyptian banking sector, Aly said, in addition to business continuity during the crisis.

“These efforts have allowed the sector to weather the toughest global crises, foremost of which was Covid-19,” he added.—Zawya News