ADIB’s Q1 2023 profit surges to $299m on higher margins

ADIB’s Q1 2023 profit surges to $299m on higher margins

Abu Dhabi Islamic Bank (ADIB) reported a 54 per cent increase in first-quarter profit as rising interest rates and the UAE’s resilient economy helped to boost business. The Shariah-compliant bank made a profit of $299.5m (Dhs1.1bn) in the three months to March 31, up from Dhs715m in the same period last year, thanks to healthy business growth and higher margins. “The UAE economy saw a good start in 2023 supported by higher oil prices and continuation of the diversification strategy. Capitalising on the encouraging economic environment, ADIB has delivered a solid performance in the first quarter of 2023 with net profit increasing by 54 per cent to Dhs1.1bn,” said Jawaan Awaidha Suhail Al-Khaili, ADIB’s chairman. ADIB’s group revenues in the second quarter jumped 45 per cent to Dhs2bn, compared to Dhs1.4bn in the corresponding period of last year. “This was driven by 81 per cent growth in funded income to Dhs1.4bn, achieved from the growth in customer financing and higher margins,” the bank said in a bourse on Thursday. Customer financing or loans, grew to Dhs113bn at the end of the first quarter, a 19 per cent year-on-year (YoY) increase compared to Dhs90.2bn the same period a year earlier while