Adib posts 10.7% rise in Q1 net

The Abu Dhabi Islamic Bank (Adib) Group posted a 10.7 per cent increase in net profit of Dh340.1 million for Q1 2013, after taking provisions and impairments of Dh185.5 million.

Net customer financing increased 8.9 per cent to Dh54.0 billion and total assets increased 15.9 per cent to Dh88.7 billion.

The business highlights for Q1 2013 were:

•    Net customer financing assets increased in Q1 2013 by 5.5  per cent versus 31 December 2012. 
•    Number of active customers served by ADIB increased by 11.7 per cent year-on-year to 520,691.
•    ADIB opened its 76th retail branch in the UAE and installed its 570th ATM during Q1 2013. It remains on track to have 80 branches in 2013.
•    In February 2013, its new branch in Qatar was opened.
•    current and savings account balances reached Dh 34.8 billion at the end of Q1 2013, a 23.9 per cent year-on-year increase.
•    The continuation of the conservative policy of non-performing asset recognition and remedial management, including the taking of an additional Dh121.3 million in credit provisions, to ensure a healthy pre-collateral non-performing asset coverage ratio of 72.5 per cent  of the impaired portfolio, net of write-offs.

Total non-performing accounts decreased by Dh152.8 million versus 31 December 2012. The bank took an additional Dh84.3 million in specific provisions and Dh37.0 million in collective provisions in Q1 2013, thereby increasing net credit provisions to Dh3,179 million.

Total net credit provisions now amount to 5.6 per cent of gross customer financing assets and represent a pre-collateral non-performing coverage ratio of 72.5 per cent of the impaired portfolio, net of the write-offs. The bank's collective provisions now represent 1.65 per cent of total customer risk weighted assets, and remain ahead of the Central Bank’s requirement of 1.5 per cent by the end of 2014. The bank has also taken additional impairments of Dh35.9 million against other financial assets.  The bank’s shareholders also approved the creation of a Credit Risk Reserve of Dh400 million.

In addition to the credit portfolio, a further Dh28.3 million in impairments was taken against the real estate subsidiary’s legacy development and investment portfolio, bringing total impairments related to this business to Dh574.6 million over the past three years.

At the end of Q1 2013, Adib’s customer deposits stood at Dh63.4 billion, Central Bank placements at Dh4.9 billion and the net interbank position at Dh8.5 billion.

Current and savings accounts grew by 23.9 per cent year-on-year to reach Dh34.8 billion, while overall deposits increased 10.2 per cent to Dh63.4 billion during the same period.

On the asset side, net customer financing grew by 8.9 per cent year-on-year to reach a new high of Dh54.0 billion (Dh49.6 billion as at 31 March 2012) and the bank ended the quarter with a customer financing to deposits ratio of 85.2 per cent and an advances to stable funds ratio of 77.7 per cent, which is significantly better than the regulatory threshold of 100 per cent. Adib's Quick Asset to Total Asset Ratio was 26.6 per cent at Q1 2013.

 

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