Abu Dhabi Islamic Bank (ADIB) Q3 2024 earnings summary

Executive summary

• Net profit after zakat and tax for the first nine months of 2024 reached AED 4.6348 billion, up 24% year-over-year, with pre-tax profit at AED 5.2 billion and ROE at 29%.

• Revenue increased 19% year-over-year to AED 8 billion, driven by both funded and non-funded income.

• Customer base expanded by over 150,000, reaching 1.4 million clients.

• Total assets grew 21% year-over-year to AED 223 billion.

• Strategic initiatives included launching Vision 2035, digital enhancements, and significant mobile app upgrades.

Financial highlights

• Operating income for the nine months was AED 11.3 billion, up from AED 8.84 billion year-over-year.

• Non-funded income surged 41% year-over-year, now contributing 39% of total income.

• Funded income rose 9% year-over-year to AED 4.9 billion.

• Cost to income ratio improved to 29.1%, down from 32.6% a year ago.

• Cost of risk stable at 49 bps, within guidance of 40-60 bps.

Outlook and guidance

• Full-year customer financing asset growth expected to exceed 16%.

• Net profit margin guidance revised to above 4.3%.

• Cost to income ratio expected to remain below 30%.

• Return on equity projected to be above 25%, operating at 29% for the full year.

• Effective tax rate increased to 11.3% due to UAE corporate tax.