Abu Dhabi Islamic Bank's Q3 profit jumps 41% on higher revenue

Lender reports $386 million in net profit for the period

Abu Dhabi Islamic Bank's fees and commissions income in the third quarter climbed 42 per cent to Dh370 million. Getty

Abu Dhabi Islamic Bank, the biggest Sharia-compliant lender in the emirate by assets, reported a 41 per cent annual surge in its third-quarter net profit, driven by higher revenue and fee income.

The total net profit after zakat and tax for the three months to the end of September climbed to Dh1.42 billion ($386 million), ADIB said on Wednesday.

Gross revenue from funds for the period rose 89 per cent year-on-year to Dh2.4 billion, while investment income jumped 35 per cent to Dh246 million.

Fees and commissions income climbed 42 per cent to Dh370 million. Foreign exchange income also rose during the period.

“Amid global economic uncertainty, the UAE economy continues to grow, benefiting from strong domestic activity and from foreign inflows of capital,” Jawaan Al Khaili, chairman of ADIB, said.

The bank “will continue to work towards creating value for all our stakeholders … we are committed to playing a key role in driving further economic growth and development across the region”.

The UAE economy has rebounded strongly from the pandemic-induced slowdown on the back of higher oil prices and measures to mitigate the impact of the pandemic.

The economy expanded by 7.9 per cent in 2022, its biggest increase in nearly 11 years.

It carried forward the momentum to this year, with gross domestic product growing by 3.8 per cent on an annual basis in the first quarter, boosted by the UAE's strong non-oil sector.

ADIB's nine-month profit grew by 53 per cent annually to Dh3.75 billion as gross revenue from funds, fees and commissions income and foreign exchange income rose during the period. Other income also climbed in the third quarter.

Customer deposits during the nine-month period surged 28 per cent year-on-year to Dh152 billion, while net customer financing increased 15 per cent to Dh112.5 billion. Total assets grew 25 per cent to Dh184 billion.

“With its robust fundamentals, strong financial position … we believe that ADIB is well-positioned to end the year with solid results, paving the way to further enhance shareholders' return,” group chief financial officer Mohamed Abdelbary said.