Adib net profit for Q2 up 15.1%

The Abu Dhabi Islamic Bank (Adib) Group posted a 15.1 per cent increase in net profit of Dh371.4 million for Q2 2013, after taking provisions and impairments of Dh179.8 million.

The performance of the main banking business in the first half of the year has been particularly strong, with total assets reaching Dh90.7 billion for the first time.

At the end of Q2, customer deposits stood at Dh66.9 billion, Central Bank placements at Dh5 billion and the net interbank position at Dh5.1 billion. A continued focus on reducing the cost of funds and deposit concentration saw current and savings accounts grow by 19.9 per cent year-on-year to reach Dh36.7 billion, while overall deposits increased 10.4 per cent to Dh66.9 billion during the same period.

On the asset side, net customer financing grew by 9.8 per cent in H1 2013 to reach a new high of Dh56.2 billion (Dh51.2 billion as on December 31, 2012) and the bank ended the quarter with a customer financing to deposits ratio of 84.0 per cent and an advances to stable funds ratio of 79.1 per cent, which is significantly better than the regulatory threshold of 100 per cent. Adib's quick asset to total asset ratio was 25.9 per cent at the end of Q2.

Tirad Al Mahmoud, CEO of ADIB, said, “We not only meet the new Third Basel Accord based liquidity ratios but our deposit concentration risk continues to decline."

"With regards to provisioning, we have continued our prudent practices and added a further Dh180 million in total credit provisions and impairments during Q2, while maintaining our collective provisions well above the Central Bank guidelines of 1.5%. Since 2008, total credit provisions and impairments taken by the Group amounts to Dh4,646 million. We remain cautious about any recovery in the non-performing credit environment."


 

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