On Wednesday, Abu Dhabi Islamic Bank (ADIB) revealed a 30% increase in net profit after tax for the first half of 2024, from Dh2.33 billion to Dh3.03 billion. The bank’s performance has been driven by a robust increase in its balance sheet, improved net profit margins, and fee-based revenue generation.
There was a 40% increase in net profit before tax to Dh3.42 billion in H1 2023. Revenue for the first half of 2024 increased by 25% to Dh5.35 billion from Dh4.26 billion during the same period the previous year, bolstered by robust business volumes in all product categories and business segments as well as ongoing strength in fee-based ventures.
With fees and commissions from investment banking, retail, and cards growing by 28% YoY, non-funded income increased by 52% YoY to Dh2.0 billion in H1 2024 from Dh1.3 billion the previous year. Non-funded Income now makes up 38% of Operating Income, up from 31% in H1 2023, demonstrating the ongoing strategic emphasis on revenue diversification.
The cost-to-income ratio increased to 28.6% from 33.9 percent the year before, an improvement of 5.3 percentage points. According to the bank, “increased income and improved productivity were the main drivers.
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