Abu Dhabi Islamic Bank (ADIB) reported a double-digit growth in net profit for the first quarter, on the back of an increase in lending and income from fees and commissions.
The bank, which is ranked by Forbes as the Middle East’s 12th most valuable lender, reported a net profit after tax of AED1.7 billion ($463 million) for the first three months of 2025, an increase of 18 percent compared to the same period last year.
Revenues rose by 14 percent year on year to AED2.9 billion last year. This growth was driven by higher income from financing activities and non-funding income.
Net profit margin slipped by 36 bps to 4.31 percent despite a 100 bps cut in the benchmark rate. Cost to income ratio stood at 28.9 percent, an improvement from 30.4 percent a year earlier.
Impairments decreased by 3 percent to AED106 million during the quarter, while the non-performing asset (NPA) ratio improved to 3.7 percent, its lowest level since Q4 2016.
The bank attributed this drop in NPA to “active remediation of legacy portfolio coupled with strong underwriting standards”.
ADIB shares, which are listed on the Abu Dhabi stock exchange, closed at AED16.90 on Wednesday, up 22 percent year to date.
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