Abu Dhabi Islamic Bank (ADIB) said its net profit in the first quarter (Q1) of the year surged by 125 percent to AED608 million ($165.5 million) compared to AED270 million in Q1 2020, marking an increase of 125 percent.

The growth in net profits reflects the strong underlying performance across the business, reported state news agency Wam, citing a bank statement.

Revenue increased 3.3 percent to AED1,336 million from AED1,292 million in the same period last year with non-funding income growing by 30 percent offsetting the impact of low rate environment.

Operating Expenses were reduced by 7 percent year-on year due to the successful implementation of technology-led initiatives that helped reduce the cost of sales and customer acquisition while also streamlining internal processes. ADIB consistently demonstrated balance sheet strength with assets growing by 6.5 percent mainly due to a growth in customer financing by 5 percent compared to Q1 2020.

Jawaan Awaidah Al Khaili, ADIB Chairman, said: "We have made a strong start to 2021, in what continues to be an uncertain economic environment related to the COVID-19 pandemic. Our net profit surged 125 percent compared to Q1 2020 and up 26 percent versus Q4 2020. This reflects our strong underlying performance across our all our businesses, partially driven by a rapidly improving economy which allowed us to decrease our impairment by 66 percent compared to Q1 2020.

"This solid first quarter was also achieved through continued cost discipline which saw our operating expenses improve by 7 percent year on year, as well as sustained business momentum and targeted strategic initiatives which partially offset the headwinds from record low rates and the overall economic slowdown brought about by the pandemic."

Mohamed Abdelbary, Group Chief Financial Officer, said: "ADIB delivered a resurgent financial performance in Q1 2021 with 125 percent growth in net profit over the same period last year, which is a strong result in what continues to be an uncertain economic environment related to the COVID-19 pandemic.

“The growth in net profit was driven by strong performance across all our business segments on both costs and revenues and a decrease in our impairments allocation as a result of the improving economic outlook. Net revenue was 3 percent higher compared to Q1 2020 as the growth in customer financing and in investment income, fees & commissions more than offset a decline in margins due to lower rates."