UAE-based Abu Dhabi Islamic Bank (ADIB) reported an 18% YoY increase in consolidated net profits to AED 715mn ($192.7mn) during Q1 2022. Total revenues rose to AED 1.5bn ($410mn), up 6% YoY, driven by a 12% increase in non-funded income to AED 620mn ($168.8mn) and a 1% growth in funded income to AED 789 mn ($214.8mn). Impairments declined by 15% to AED 113mn ($30.76mn) YoY on an overall improvement in economic conditions. Non-performing financing was at AED 8.4bn ($2.3bn) against AED 7.7bn ($2.1bn) in the previous year, indicating a challenging operating environment and translating to a non-performing financing ratio of 8.8% vs. 8.9% last year. ADIB posted a 6% balance sheet growth to AED 139bn ($37.8bn) on 9% growth in customer financing growth and 8% deposit growth whilst also added 30k new customers in Q1. ADIB’s liquidity position was stable with the eligible liquid assets ratio at 16.0%. As of March 2022, the bank maintained a robust capital position with a CET1 ratio at 12.7% and a capital adequacy ratio of 18.1%. For FY 2022, ADIB expects gross financing growth of around 5-7%, net profit margin of 2.9-3.1%, and net income growth of 15-20%.

ADIB’s dollar bonds were trading lower with its 7.125% Perp down over 0.5 points to 103.3, yielding 4.61%.

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