Abu Dhabi Islamic Bank (ADIB) reported a growth in net profit of 45% for 2023 to $1.4 billion (AED 5.25 billion) from AED 3.62 billion in 2022, reflecting a consistent trend of strong growth.
Net profit for Q4 2023 reached AED 1.5 billion with 29% growth versus Q4 2022.
Revenue for 2023 improved by 36% to AED 9.3 billion compared to AED 6.8 billion last year due to excellent income diversification mix and strong growth across all business segments and products.
Funded income grew by 47% to AED 6.1 billion vs AED 4.2 billion last year, driven by higher volumes and better margins. Non-funded income grew by 18% to reach AED 3.2 billion in 2023 versus AED 2.7 billion last year driven by 18% growth in fees and commissions.
Cost to income ratio was managed down with an improvement of 2.0 percentage points to 32.9% versus 34.9% in the corresponding year. This was predominantly driven by growth in Income and enhanced productivity.
Impairments decreased 1% to AED 760 million for 2023. Non-Performing asset ratio improved to 6.1% lowest since Q4 2019 due to active management of legacy portfolio coupled with strong underwriting standards whilst the Coverage ratio (including collaterals) improved by 11.6 percentage points to 139.5%.
Total assets increased 14% to reach AED 193 billion, driven by 6% growth YoY in gross financing and 26% growth in investments.
Customer deposits rose 14% to reach AED 157 billion versus AED 138 billion in 2022 driven mainly by 9% growth in Current and Savings Accounts (CASA) despite the high-rate environment with CASA now comprising 65% of total deposits.
