ADIB eyes sustained growth with 125% Q1 net profit surge

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Dhabi

Abu Dhabi Islamic Bank has said that it is well-positioned for a period of sustained growth in 2021 on the back of a 125 per cent jump in first-quarter net profit to Dh608 million.

The bank said the net profit growth reflects the strong underlying performance across the business.

“Revenue increased 3.3 per cent to Dh1.336 billion versus Dh1.292 billion in the same period last year with non-funding income growing by 30 per cent offsetting the impact of the low-rate environment,” ADIB said in a statement.

The said it reduced operating expenses by seven per cent year-on-year “due to the successful implementation of technology-led initiatives that helped reduce the cost of sales and customer acquisition while also streamlining internal processes.”

“ADIB consistently demonstrated balance sheet strength with assets growing by 6.5 per cent mainly due to a growth in customer financing by five per cent compared to Q1 2020,” it said.

Jawaan Awaidah Al Khaili, chairman, of ADIB, said the solid first quarter was also achieved through continued cost discipline which saw the bank’s operating expenses improve as well as sustained business momentum and targeted strategic initiatives which partially offset the headwinds from record low rates and the overall economic slowdown brought about by the pandemic.

“In the first quarter, we continued to make significant investments in products, people, and technology, while maintaining credit discipline and a strong balance sheet.

We will develop new products and services that will allow us to support customers at all important financial steps in their lives while attracting new segments where we can grow profitably building on our strong brand and market positions.—Khaleej Times