Abu Dhabi Islamic Bank profit down 38% as impairment charges double in 2020
Abu Dhabi Islamic Bank posted a 38.3% drop in group profit for 2020 as impairment charges soared 99.7%.
The Shariah-compliant bank on Sunday (Feb 14) reported 1.6 billion dirhams ($0.44 billion) in net profit for 2020 compared to 2.6 billion dirhams in 2019.
Net profit margin dropped 74 basis points to 3.51%.
Credit provisions and impairment charges soared to 1.3 billion dirhams compared to 658.1 million dirhams in 2019. ADIB Group CEO Mohamed Abdelbary said this was due to “economic uncertainty” in what chairperson Jawaan Awaidah Al Khaili called “an incredibly challenging year brought upon by the COVID-19 pandemic”.
Group revenue dropped by 9.4% to 5.36 billion dirhams. Financing activities comprised 61.9% of this revenue (3.32 billion dirhams, down 12.9%) and non-financing activities contributed 38% (2.03 billion dirhams, down 63 million dirhams).
On the balance sheet, assets rose by 1.5% to 127.8 billion dirhams. Customer financing grew by 3.9% to 87.41 billion dirhams but deposits nudged down by 0.1% to 101.28 billion dirhams.
ABU DHABI ISLAMIC BANK KEY STATS FY2020 vs. 2019
- Net revenue: 5.36 bln dirhams, down by 9.4%
- Total expenses: 2.45 bln dirhams, down by 7.7%
- Credit provisions and impairment charge: 1.31 bln dirhams, up by 99.7%
- Net profit: 1.6 bln dirhams, down by 38.3%
- Assets: 127.8 bln dirhams, up by 1.5%
- Gross customer financing: 87.41 bln dirhams, up by 3.9%
- Customer deposits: 101.28 bln dirhams, down by 0.1%
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