Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Abu Dhabi Islamic Bank (ADIB) reported a record performance in 2024, with net profit before tax increasing by 26% year-over-year (YoY) to Dh6.9 billion.
ADIB has posted the details of the year's performance on the Abu Dhabi Securities Exchange (ADX) website after a board meeting on Tuesday.
The bank has declared a cash dividend of 83 fils per share, amounting to a total payout of Dh3.030 billion, representing 50% of 2024 net profit. The bank's net profit after tax grew grew 16% YoY to Dh6.1 billion.
According to an analysis document posted on the ADX, the bank's strong balance sheet growth, coupled with increased business momentum and diversified revenue growth, has fuelled exceptional financial performance in 2024.
Reacting to the results, Jawaan Awaidah Al Khaili, Chairman of ADIB, said: "In 2024, we continued to achieve significant milestones, setting new financial records with a return on equity (RoE) of 28%, advancing our digital transformation journey and accelerating our sustainability initiatives."
Speaking on the expansion, the chairman said: "ADIB's strong market position has allowed us to grow our market share by attracting approximately 216,000 new customers to ADIB in 2024."
The chairman, who is upbeat about the outlook for the current year, added: "We believe this broad momentum sets up 2025 very well for ADIB. With the launch of 2035 Vision, we are putting into place a transformative roadmap that positions us at the forefront of our industry."
Revenue for 2024 surged 14% to Dh10.6 billion, driven by robust growth in both funded and non-funded income. Funded income increased by 7%, supported by solid business volumes. Non-funded income soared 28%, boosted by a 12% rise in fee-generation revenues and a 39% jump in investment income. This diversification strategy is evident in the increased contribution of non-funded income to operating income, now at 38%. Net Profit Margin reached a commendable 4.35%.
Operating expenses for 2024 were Dh3.1 billion reflecting a 3% YoY increase. This rise is attributed to ongoing investments in people digital initiatives and new technology. The non-performing asset ratio improved to 4.0%, its lowest level since Q1 2017 due to active remediation of legacy portfolio coupled with strong underwriting standards.
Total assets surged 17% YoY to Dh226 billion, fuelled by financing growth across retail and corporate banking, alongside an expanded investment portfolio. Customer deposits climbed 16% to Dh183 billion, maintaining a healthy funding mix with 9% YoY growth in Current and Savings Accounts (CASA) growth, now comprising 61% of total deposits.
ADIB demonstrated a strong financial foundation with a robust capital position, boasting a Common Equity Tier 1 ratio of 12.1% and a total Capital Adequacy Ratio of 16.2%. The bank's liquidity profile remained healthy and compliant with regulatory standards, evidenced by an advances to stable funding ratio of 81.0% and an eligible liquid asset ratio of 17.8%. Total shareholders' equity experienced a notable 11% YoY increase, reaching Dh23 billion, driven by robust earnings growth. This translated to an impressive RoE of 28% in 2024.
Speaking on the growth strategy, Mohamed Abdelbary, Group Chief Executive Officer of ADIB, said: "ADIB continued to successfully execute its ambitious growth strategy against a positive economic backdrop in the UAE. The bank delivered solid financial performance, achieving record highs in net profit and return on equity. This is testament to ADIB's unique market position, our customer centric approach, underpinned by a solid balance sheet and prudent risk management."
