The Abu Dhabi Islamic Bank (ADIB) achieved an increase of 1.7% in net profit to AED 600.3 million during the first quarter of 2019 compared to AED 590.4 million in the same period last year.
Net revenues grew by 5.3% to AED 1.436.6 billion in Q1-19 from AED 1.363.9 billion in Q1-18.
The banking groups’ credit provisions and impairments increased by 24.4% to AED 186.4 million over the first quarter this year from AED 149.9 million in Q1-18, according to a press release on Monday.
In Q1-19, the ADIB’s total assets amounted to AED 124.6 billion, up 0.4% from AED 124.1 billion at the end of 31 March 2018; this amount represents a decrease of 0.4% from AED 125.2 billion at 31 December 2018.
“Net customer financing increased by 2.8% to AED 78.1 billion, from AED 76.0 billion at the end of 31 March 2018, and decreased 0.7% from AED 78.7 billion at 31 December 2018,” according to the press release.
Customer deposits of the ADIB decreased by 1.6% to AED 100.6 billion in Q1-19 from AED 102.2 billion in the corresponding period a year ago; an increase of 0.2% from AED 100.4 billion at 31 December 2018.
The banking group’s capital adequacy ratio (CAR), under Basel III, was 17.53% in Q1-19 when compared to 16.02% in Q1-18, while its was at 17.18% by the end of December 2018, after adjusting for the 2018 dividend.
Commenting on the ADIB’s performance over Q1-19, the CEO said, “We continue to grow customer finance on a diversified basis across all sectors with our overall finance portfolio growing 2.8% in the first quarter. We will continue to cautiously manage risk to ensure a stability in our finance portfolio. With regards to provisioning, we remained prudent in classifying our impaired portfolio and in taking provisions. As a result, we took additional provisions of AED 189.3 million for customer financing.”