-- Abu Dhabi Islamic Bank (ADX:ADIB) reported stronger-than-expected first-quarter earnings on Wednesday, driven by balance sheet expansion and continued customer acquisition across key segments.
Profit attributable to equity holders of the bank for the three months ended March 31 rose year over year to 1.71 billion Emirati dirhams from 1.62 billion dirhams, while EPS increased to 0.444 dirham from 0.417 dirham. Analysts polled by FactSet expected net income of 1.65 billion dirhams.
At the same time, the lender's net impairment charge swelled 50% annually to 158 million dirhams, but cost of risk remained "fairly stable" at 0.48%, in line with guidance. The nonperforming asset ratio improved further to 2.6%, a record low for the Islamic bank.
With 66,000 new customers and sustained business volumes, the group's operating income rose to 4.73 billion dirhams, from 4.12 billion dirhams a year ago. Of the total, funded income climbed 17% to 2 billion dirhams, thanks to higher financing volumes and sustainable returns. Non‑funded income edged up 4% to 1.2 billion dirhams as investment income gained 10%.
Across the balance sheet, total assets expanded by 18% to 287 billion dirhams, led by financing growth in both retail and corporate banking and an expansion of the group's investment portfolio. Customer deposits increased 20% to 239 billion dirhams, while return on equity stood at 27.1%.
"We will continue to focus on strategic priorities as part of Vision 2035," Group Chief Executive Officer Mohamed Abdelbary said. "Our strong balance sheet, diversified operating model, and healthy pipeline enable us to continue supporting our customers and the wider economy while focusing on sustainable and long-term value creation."