Abu Dhabi Islamic Bank (ADIB) said its net profit for 2023 increased 45% to top AED5.25 billion ($1.42 billion) from AED3.62 billion in 2022. Net profit for Q4 2023 hit AED1.5 billion with 29% growth, a report said.

ADIB said its revenue for 2023 improved by 36% to AED9.3 billion compared to AED6.8 billion last year due to income diversification mix and strong growth across all business segments and products, Emirates News Agency, WAM, said.

Funded income grew by 47% to AED6.1 billion against AED4.2 billion last year, driven by higher volumes and better margins. Non-funded income grew by 18% to reach AED3.2 billion in 2023 as compared to AED2.7 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 AED760 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%.

According to the report the total assets increased 14% to reach AED193 billion, driven by 6% growth YoY in gross financing and 26% growth in investments.

Customer deposits rose 14% to reach AED157 billion versus AED138 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.

ADIB maintained a robust capital position with a Common Equity Tier 1 ratio of 12.2% and a total Capital Adequacy Ratio of 16.8%. The bank’s liquidity position was healthy and comfortably within regulatory requirements, with the advances to stable funding ratio at 76.0% and the eligible liquid asset ratio at 21.0%.

Jawaan Awaidah Al Khaili, Chairman, stated: “ADIB produced outstanding results in 2023 exceeding the AED 5 billion milestone in net profit. The substantial increase in profitability and the strength of our capital position has allowed us to recommend an increase in our dividend payout to 71 fils per share.

"ADIB produced outstanding results in 2023 exceeding the AED 5 billion milestone in net profit, the highest ever achieved by ADIB.

The record return on equity of 27% for the full year reflect the healthy and resilient local economy coupled with our focus on delivering transformational initiatives."

Nasser Abdulla Al Awadhi, Group Chief Executive Officer (GCEO), said: “ADIB posted a very strong set of financial results in 2023 with net profit up 45% to a historical new high of AED5.25 billion. This was on the back of 36% growth in revenues to AED9.3 billion due to an increase in transaction volumes and improved margins led by an efficient funding base and higher yields.”