Abu Dhabi Islamic Bank, the biggest Sharia-compliant lender in the emirate, reported a 54 per cent surge in its 2022 net profit, as income grew amid a broader recovery in the UAE economy.
Net profit after zakat and tax for the 12-month period attributable to shareholders rose to Dh3.58 billion ($974 million), ADIB said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.
Total operating income for the year rose more than 31 per cent to Dh7.72 billion, driven by an increase of about 43 per cent in net fees and commission income.
Provisions for bad loans fell by more than 19 per cent to Dh769 million, reflecting an overall improvement in economic conditions, the bank said.
The bank's efforts to "diversify" its income and expand into new segments while managing asset quality led to the strong results, said Jawaan Al Khaili, chairman of ADIB.
The board has recommended a dividend of 49 fils per share compared to 31 fils in 2021, he said.
The UAE economy made a strong rebound from the coronavirus-induced slowdown in 2021 and the pace of economic momentum has continued to improve this year on the back of government initiatives and higher oil prices.
The Arab world’s second largest economy was projected to grow 7.6 per cent last year, the highest in 11 years, after expanding by 3.8 per cent in 2021, according to the UAE Central Bank.
For 2023, the Central Bank projected a non-oil sector expansion of 4.2 per cent, on the back of the easing of pandemic-related restrictions, a recovery in global travel and tourism and the booming real estate and construction sectors. Overall, the country’s economy is projected to grow 3.9 per cent in 2023, it said.
ADIB’s total assets increased 23 per cent annually last year to Dh168.52 billion, while customer deposits rose 26 per cent to Dh138 billion.
“Our franchise has been enhanced with the consolidation of ADIB Egypt. This will help us to further extend our operations in Egypt — one of the most promising strategic markets in the region and highlights our firm confidence in the Egyptian economy,” said Nasser Al Awadhi, group chief executive of ADIB.
Earlier this month, ADIB bought additional shares in its Egyptian subsidiary to boost its stake in the lender to more than 52 per cent.
The UAE bank purchased 9.6 million shares from National Investment Bank, representing 2.4 per cent of ADIB Egypt's share capital.
“Looking ahead, while the global economic outlook remains uncertain, marked by inflationary pressures, we are confident that our strong balance sheet, capital levels and liquidity combined with our innovative and agile spirit will position us well to capture new opportunities,” said Mr Al Awadhi.
“We will continue to identify new growth areas and invest our resources to deliver sustainable shareholder returns and pursue our growth and transformation plans.”
