Abu Dhabi Islamic Bank (Adib) net profit for Q1 2020 fell 55 per cent to Dh269.7 million as compared to Dh600.3 million in the same period last year due to increase in provisioning as well as lower revenues, given unprecedented market conditions.

Its net revenues plummeted 10 per cent from Dh1.43 billion in Q1 2019 to Dh1.29 billion. Total assets fell 1.5 per cent to Dh122.7 billion while customer deposits also shrank 1.8 per cent to Dh98.85 billion.

Mazin Manna, group CEO of Adib, said profits were impacted by the challenging macro-economic environment caused by the Covid-19 pandemic and lower revenue due to rate cuts.

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“Given the uncertain economic outlook, we increased our impairment allowances and our provisioning in anticipation of a potential deterioration in credit quality.”

Manna said: “We have maintained a rigorous discipline in managing costs by successfully implementing a number of optimisation initiatives to reduce day-to-day expenses which led to a 4.9 per cent improvement in costs compared to Q4 2019. This was slightly offset by the continued investments in new digital and strategic initiatives that can help to attract new customers and support ADIB’s long-term growth.”

As a result, Credit provisions and impairments for Q1 2020 increased to Dh387.1 million from Dh186.4 million in Q1 2019. Its capital adequacy ratio stood at 18.08 per cent, well above regulatory thresholds

Courtesy by :https://www.zawya.com/