Abu Dhabi Islamic Bank, the biggest Sharia-compliant lender in the emirate, said its second-quarter net income almost halved, as revenue fell and provisions for expected loan losses rose amid the pandemic-driven slowdown. Net profit for the three-month period to June-end, fell to Dh317.9 million, the bank said in a <a href="https://adxservices.adx.ae/WebServices/DataServices/contentDownload.aspx?doc=2138714">statement</a> to the Abu Dhabi stock exchange, where its shares trade. Revenue for the quarter declined 12.8 per cent to Dh1.26 billion from a year earlier, while provisions for bad loans more than doubled to Dh321.5m. “This period demonstrated the resilience of the bank’s businesses … as we remained focused on delivering uninterrupted services to customers amidst a very challenging environment,” Jawaan Awaidah Al Khaili, chairman of ADIB, said. “At the same time, we took mitigating steps to manage our risk while continuing to invest in initiatives that will support the growth of our business over coming years.” ADIB said its group net profit for the first six months of the year dropped to 587.6m from Dh1.23bn form the same period in 2019. The first-half group net revenue declined to 2.56bn, from Dh2.89bn reported for the year-earlier period. Credit provisions and impairments for the reporting period jumped to Dh708.6m from Dh345m in the first half of 2019. “While cost of credit and the challenging macroeconomic environment largely impacted our profits in the first half of 2020, we have been able to navigate the Covid-19 pandemic reasonably well,” Mr Al Khaili said. “Our levels of capital and liquidity continue to remain strong.” Lenders across the globe are facing headwinds, taking on provisions for expected loan losses, as the global economy slides into its deepest recession since 1930s. JPMorgan, America's largest bank set aside $10.47bn (Dh38.4bn) to cover bad loans, which halved its second-quarter profit. HSBC, Europe's largest lender, has also reported a 57 per cent decline in its second quarter profit earlier this month and warned loan losses may climb to as much as $13bn. ADIB said its operating expenses of Dh1.25bn at the end of June dropped 4 per cent year-on-year, reflecting its cost initiatives taken to create future efficiencies. Net customer financing increased 3.9 per cent to Dh82bn, led by growth in corporate banking businesses. Customer deposits came in at Dh98.6bn at the end of June, down slightly from Dh99.8bn from a year earlier. ADIB’s total assets dropped 1.2 per cent to Dh124.4bn from the end of last year, it said. In May, ADIB appointed its chief operating officer as the interim head of the bank after its group chief executive Mazin Manna stepped down. At the end of March ADIB secured shareholders’ approval to raise its foreign ownership limit to 40 per cent, up from the current 25 per cent, as it looks to expand its investor base.