(MENAFN- Khaleej Times) Abu Dhabi Islamic Bank, or ADIB, on Monday announced its nine-month results and declared that its net profit jumped by 21.1 per cent to Dh1.34 billion, compared to Dh1.11 billion for the same period last year.
The ADIB group's net revenues for the first nine months of 2014 increased by 15.3 per cent to Dh3.33 billion, compared to Dh2.88 billion in the first nine months of 2013. Credit provisions and impairments increased by 3.6 per cent to Dh579.1 million compared to Dh558.9 million for first nine months of 2013. The Shariah-compliant bank also posted a 20.5 per cent increase in net profit to Dh476.8 million for the third quarter of 2014, compared to Dh395.5 million for the September quarter last year.
Group net revenues for the third quarter of 2014 increased by 15.2 per cent to Dh1.17 billion. Credit provisions and impairments for the third quarter decreased by 3.5 per cent to Dh186.8 million.
Tirad Al Mahmoud, chief executive officer of ADIB, said: "All customer-facing units, retail banking, private banking, community banking and wholesale banking continued to grow market share and as a consequence we have seen ADIB's customer financing assets increase 21.7 per cent year-on-year to Dh71.6 billion backed by an 18.2 per cent increase in customer deposits to Dh82.9 billion over the same period."
The lender's financial performance, which included the cost of acquiring Barclay's UAE retail banking business, was underpinned by the main banking business in the UAE, with the group's net customer financing assets growing 21.7 per cent in the third quarter compared to the same quarter in 2013 to Dh71.6 billion.
The focus of ADIB's customer-centric strategy remains on delivering an award-winning experience to over 750,000 clients across all major segments though an expansive branch network and market leading digital channels.
This has seen ADIB increase its deposits by 18.2 per cent to Dh82.9 billion and its total assets by 12.2 per cent to Dh109 billion, while simultaneously managing its cost of credit and impairments. As a result, total non-performing accounts as a percentage of gross customer financing decreased to 6.2 per cent versus 8.9 per cent at September 30, 2013 while total credit provisions and impairments decreased by 3.5 per cent to Dh186.8 million during the third quarter of 2014.
Customer deposits grew to Dh82.9 billion, an increase of 18.2 per cent from Dh70.2 billion at the end of September 30, 2013, and 9.8 per cent over the Dh75.5 billion at December 31, 2013, as the bank maintained its best in market liquidity ratios.
Priority and private banking increased assets under management by 253 per cent to Dh4.2 billion versus Dh1.2 billion at the end of the third quarter of 2013. The bank further enhanced its position as one of the top three retail banking networks in the UAE with 85 branches (including transfer of two from Barclays), 656 ATMs (including transfer of 29 from Barclays) and the leading mobile and internet banking platforms at the end of the third quarter.
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