bloomberg/Christopher Pike
by Kudakwashe MuzoriwaAbu Dhabi Islamic Bank (ADIB) has posted a 5.2 per cent increase in Q3 2019 net profit and a 5.6 per cent growth for the first nine months to AED 1,851 million due to higher revenues.
In a statement, ADIB said that revenues for the reporting period increased by 5.5 per cent year-on-year to AED 1.5 billion while the operating income margin grew 8.7 per cent to AED 828.9 million.
Mazin Manna, ADIB’s Group CEO, said, “ADIB’s operating profit increased by 8.7 per cent year-on-year in Q3 2019 supported by growth in income from financing and higher investment and fee income—leading to a healthy return on equity of 18 per cent.”
ADIB’s posted an operating profit of AED 828.9 million compared to AED 762.7 million in Q3 2018 driven by increase in net customer financing to AED 79.2 billion in the first nine months and a growth in non-financing income on the back of higher investment income.
The bank recorded a net profit margin of 4.22 per cent despite the lower rates in the market helped by the positive impact of the low cost of fund.
“Our growth in revenues has been complemented by our discipline in managing costs and risk which saw the cost to income ratio decreased by 1.6 per cent year on year,” said Manna.
The has implemented several savings initiatives that have controlled operating expenses without compromising our performance or quality of service. The financial benefits of the programme have been partially offset by investments in new digital and strategic initiatives that the bank is implementing to attract new customers and support the future growth of the bank, added Manna.
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CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.
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