Islamic Finance

ADIB first-half profit almost doubles as impairments drop by half

UAE Islamic banks are seeing big improvements in their impairment provisions with Abu Dhabi Islamic Bank reporting 366.8 million dirhams ($99.88 million) for the first half of 2021, a 48% drop year-on-year.

ADIB’s improved position follows drops in impairment charges for Emirates Islamic Bank (86%) and Dubai Islamic Bank (29%), driven by economic recovery, both banks reported on Wednesday.

ADIB’s first-half net profit surged by 89% year-on-year to 1.11 billion dirhams, according to a bourse filing on Thursday (July 29).

The bank’s CFO Mohamed Abdel Bary told Bloomberg that ADIB is currently not in talks with any parties about a merger and acquisition transaction but that it has the “ammunition” to be able to capture opportunities if they arise.

ADIB is the UAE’s second-largest standalone Islamic bank after Dubai Islamic Bank, holding 130.61 billion dirhams in assets at the end of June.

DIB holds 293.78 billion dirhams in assets, and Emirates Islamic 68.04 billion dirhams.

Sharjah Islamic Bank and Ajman Bank are the other standalone Shariah-compliant banks in the UAE.

© 2021 All Rights Reserved