Tuesday, Feb 04, 2014
Abu Dhabi
Abu Dhabi Islamic Bank yesterday reported a net profit of Dh1.45 billion for 2013, up 20.7 per cent compared to Dh1.20 billion in 2012. The profit for the fourth quarter of 2013 increased by 41.4 per cent to Dh343.3 million compared with Dh242.8 million in the same quarter of 2012.
The Board of Directors recommended the distribution of 30.66 per cent cash dividends and 26.87 per cent bonus shares for 2013. The cash dividends represent 50 per cent of full year net profits for 2013.
“ADIB’s vision of becoming a top-tier regional bank, with market leadership across all primary segments in the UAE, is firmly on track,” Tirad Al Mahmoud, CEO of ADIB, said in a statement released yesterday. “The performance reflects the sustainable strength of our core banking business in that it did not rely on reversing non-performing accounts or reducing provisions.”
Total assets have passed an important milestone and are now Dh103.2 billion, increasing by 19.8 per cent in 2013.
ADIB maintained its position as one of the most liquid banks in the UAE. At the end of Q4 2013, customer deposits stood at Dh75.5 billion, Central Bank placements at Dh14.1 billion and the net interbank position at Dh0.4 billion.
The financial performance was underpinned by the main banking business, with customer financing growth of 20.6 per cent and deposit growth of 23.2 per cent in 2013, on the back of the increase in Tier 1 capital in November 2012 and the subsequent resumption of ADIB’s growth strategy.
The expansion into new customer segments, including long-term expatriates and emerging commercial entities, while remaining loyal to the core UAE National customer base and large corporates, saw the number of active customers served by ADIB increase by 14.0 per cent in 2013 to 577,565.
A strong performance in the Retail and Wholesale Banking business saw ADIB’s net customer financing assets increase by 4.9 per cent vs September 30, 2013, a 20.6 per cent increase during 12 months of 2013. Simultaneously, a new Private Banking strategy was implemented to ensure our high-net-worth client experience is market-leading.
In 2013, the sharia compliant lender continued its conservative approach to new customer financing while simultaneously managing its legacy non-performing credit and real estate exposures, with credit provisions and impairments down 2.7 per cent vs 2012 to Dh780.4 million.
ADIB Securities increased net profit for 2013 by 416.6 per cent to Dh29.7 million vs net profit of Dh5.7 million for 2012, on the back of a strong UAE equity market performance in 2013.
With regard to Burooj, the Group’s real estate investment subsidiary, there was a reduction of commitments by a net Dh775 million vs 2012, as this aspect of its legacy portfolio was finally brought to account.
“I am pleased that our systematic approach to bringing Burooj’s legacy development land exposure to account yielded meaningful results in 2013,” Al Mahmoud said. “We now believe that, barring any further shocks to the real estate market, this phase has now been completed and we can now turn our attention enhancing its future prospects and the yield on our investment property portfolio.”
Staff Report
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