ADIB profits from increase in customer numbers



Abu Dhabi Islamic Bank, the biggest Sharia-compliant lender in the emirate, yesterday reported a 5.5 per cent rise in third-quarter profit on a jump in customer numbers.

ADIB said it managed to boost profit from July to the end of September even as the cost of putting money aside for bad debt rose.

Net income increased to Dh503.2 million from Dh476.8m in the same period the previous year. Revenue rose to Dh1.2 billion from Dh1.1bn a year earlier.

The lender said credit provisions and impairments for the third quarter increased 3.3 per cent to Dh193m. The number of customers rose by 100,000 from a year earlier.

It was not immediately clear if the gain in customer numbers was a result of ADIB's acquisition of the retail banking portfolio of Barclays Bank last year. Spokespeople for ADIB were not available to comment.

The UAE’s economy has begun to show signs of stress, with the price of oil losing half of its value in the past year. Bank executives, however, remain optimistic as the size of the non-oil economy continues to grow.

“Despite a more challenging operating environment and the increasing competition among banks in the UAE, we have seen continued growth in our customer numbers as we remain focused on our strategy of delivering the products and the banking experience that our clients want,” said Tirad Al Mahmoud, the bank’s chief executive.

mkassem@thenational.ae

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