Abu Dhabi Islamic Bank boosts profits

04 November 2014

Abu Dhabi Islamic Bank results follow completion of Barclays’ acquisition

Abu Dhabi Islamic Bank (ADIB) has posted profits of AED476.8m ($129.6m), marking a 20.5 per cent increase in profits for the third quarter of this year compared with last year.

The bank’s revenues also grew, rising by 15.2 per cent to reach AED1.17bn in the third quarter.

Despite the profit growth, Tirad al-Mahmoud, CEO of the bank, says ADIB will continue to monitor its level of provisioning and problem loans left over from the financial downturn in 2009-10.

“We don’t believe that the impact of the recent financial crisis on the UAE credit cycle has concluded, and until the remedial portfolio is dealt with in a manner that we consider sustainable, we will continue with our problem credit recognition, provisioning and related recovery management processes,” he says.

Credit provisions and impairments for the third quarter decreased by 3.5 per cent to reach AED186.8m.

ADIB completed its acquisition of the UK bank Barclays’ retail arm in the UAE in September. The bank is now in the process of integrating the bank’s customers into its existing infrastructure.

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