UAE-based Abu Dhabi Islamic Bank (ADIB) reported a 45% YoY increase in net profits to AED 726mn ($197.7mn) during Q2 2022. Total revenues rose 9% YoY to AED 1.4bn ($389mn), driven by a 10% growth in funded income to AED 880mn ($239.5mn) and an 8% increase in non-funded income to AED 549mn ($149.5mn). Provisions for impairments declined by 51% YoY to AED114mn ($31mn) on an improved economic outlook. Non-performing loans were at AED 8.2bn ($2.2bn) vs AED 7.8bn ($2.1bn) in Q2 2021, with the NPA ratio down YoY 40bp to 8.4%. The balance sheet grew 2% YoY to AED 141.9bn ($38.6bn), with investments increasing 8% to AED18.5bn ($5bn), and a deposit growth of 4%. The bank added 18k new customers in Q2. ADIB’s eligible liquid assets ratio was at 17.4%, 140bp up QoQ. As of June 2022, the bank had a CET1 ratio of 12.8% and a capital adequacy ratio of 18.0%. For FY 2022, ADIB gave guidance for net profit margins at 3.35-3.45%, gross financing growth of around 5-7%, and net income growth of 20-25%.
ADIB’s dollar bonds were trading flat with its 7.125% Perp at 102.32, yielding 5.04%
