Abu Dhabi Islamic Bank Sees Bright Outlook in 2018

Abu Dhabi Islamic Bank (ADIB) is well positioned to take advantage of the opportunities that are expected to arise from the positive economic outlook of the UAE, officials have said.

"We are confident that our financial strength and our focus on leveraging innovation and providing a high-quality banking experience will help us attract more customers and deliver long-term shareholder value," said Khamis Buharoon, ADIB vice chairman and acting CEO.

Buharoon noted that 2017 saw the bank's net profit rising nearly 18 per cent to Dh2.3 billion. Revenue increased by 4.6 per cent to Dh5.6 billion, while the bank also benefited from lower credit provisions and impairments in 2017 decreasing by 18.5 per cent from a year earlier.

Group net revenues for the fourth quarter of 2017 increased by 6.2 per cent to Dh1,427.9 million, compared to the Dh1,344.2 million recorded in the fourth quarter of 2016. Credit provisions and impairments for Q4, 2017 decreased by 33.8 per cent to Dh166.9 million, compared to Dh252.1 million for Q4, 2016; while group net profit for Q4, 2017 increased by 33.4 per cent to Dh607.2 million, versus Dh455.1 million in Q4, 2016.

"Despite heavy investment in advancing our digital capabilities, we demonstrated a strong expense discipline with the cost-to-income ratio decreasing by one per cent when compared to 2016. This is in line with management targets and it will enable us to invest further to support our future growth," Buharoon said. "During the year, we welcomed approximately 62,000 new customers with a strong offering of products and services, easily accessed through digital platforms. The solid performance has permitted ADIB's board of directors to recommend a cash dividend payout of 39.76 per cent of the year's net profit."

He added that ADIB has always been at the forefront of banks in the UAE when it comes to capital management, with a capital adequacy ratio under Basel II of 16.71 per cent. Capital adequacy ratio under Basel III is 17.02 per cent, which is also above the minimum regulatory thresholds advised by Central Bank of the UAE.

"In 2017, we accelerated our investment in digital banking and finding new ways to add value to our customers," Buharoon revealed. "Our digital and innovation agenda is about enhancing the customer experience, making it simpler, faster and more cost effective to access high quality financial services, while ensuring that customers continue to receive a highly personalised service. The financial discipline we exercised over the years, by prudently managing risk and credit extension, has ensured that our balance sheet remains strong."

Source: Khaleej Times