Abu Dhabi Islamic Bank (ADIB) announced on Wednesday a 30% increase in net profit after tax for the first half of 2024, reaching Dh3.03 billion from Dh2.33 billion in the same period last year. This growth is attributed to a robust balance sheet expansion, improved net profit margins, and increased fee-based income.

The bank's net profit before tax rose by 40% to Dh3.42 billion, while revenue for the first half of 2024 grew by 25% to Dh5.35 billion, supported by strong business volumes and continued strength in fee-based businesses. Revenue for the second quarter of 2024 saw a 27% year-over-year increase to Dh2.8 billion.

Funded income increased by 13% to Dh3.3 billion, driven by higher volumes and better margins. The net profit margin expanded by 19 basis points to 4.6%, reflecting higher rates and disciplined asset and liability pricing. Non-funded income surged by 52% to Dh2.0 billion, with a significant 28% growth in fees and commissions from investment banking, retail, and cards.

The cost-to-income ratio improved to 28.6%, a 5.3 percentage point reduction, primarily due to income growth and enhanced productivity. Impairments rose by 9% to Dh402 million, aligning with financing growth and prudent risk management. The non-performing asset ratio improved to 4.7%, the lowest since Q4 2018, and the provision coverage ratio increased to 149.3%.

Total assets exceeded Dh200 billion, reaching Dh213 billion, driven by a 21% growth in financing. Customer financing grew by 15% year-to-date, with Dh16 billion in new financing extended. Customer deposits increased by 15% to Dh172 billion, maintaining a healthy funding mix with a 9% growth in Current and Savings Accounts (CASA).

ADIB maintained a strong capital position with a Common Equity Tier 1 ratio of 12.9% and a total capital adequacy ratio of 17.2%. The bank's liquidity position remained healthy, with the advances to stable funding ratio at 79.5% and the eligible liquid asset ratio at 19.7%.

“We achieved another set of record results. Our second-quarter and first-half earnings for 2024 reached new highs, with notable improvement across all metrics and total asset base crossing the Dh200 billion threshold for the first time,” said Jawaan Awaidah Al Khaili, chairman. “Our first-half 2024 results reflect sustained growth across all business lines, driven by robust financing activity, a diversified funding base, and a broadening revenue mix,” added Mohamed Abdelbary, acting group chief executive officer.