Abu Dhabi Islamic Bank
ADIB
ADIB
Abu Dhabi Islamic Bank (ADIB) Egypt announced its financial results for the first half of 2014. It reported net income of EGP 117 million, with an increase of EGP 82.9 million, or 245% compared to the same period of 2013. Also the Net Income for Q2/2014 reached EGP 59.6 million, compared to EGP 57.1 million in Q1/2014.
The bank's total assets reached EGP 17 billion, an increase of 4.2% over 2013 mainly driven by growth in customer financing to reach EGP 7.5 billion or 13.4% compared to Q4 2013 which represents a market share of 1.4% market share. This asset growth was funded by a growth in core deposits by EGP 1 billion, or 7.5% growth. With this growth rate the balance sheet remains considerably liquid with 52.2% financing/deposit ratio. The Capital Adequacy Ratio CAR continued to improve to reach 11.34% at the end of June 2014, compared to 10% regulatory requirement by CBE.
Net Fees and Commission increased by 117% in H1/2014 compared to the same period of 2013 to reach EGP 124.8 million. This growth was mainly attributed to doubling trade and Cash Management volumes. At the same time, in addition Net revenue from funds increased by EGP 93.4 million, or 49.9% growth compared to the same period of 2013, to reach EGP 280.5million. This was driven by the growth in balance sheet coupled with higher spreads. This resulted in H1 2014 total revenue to reach EGP 434.2 million, compared to EGP 265 million in H1/2013 with 63% growth.
"As we continue to monitor the best opportunities available in Egyptian, through investment and establishing new business lines, we remain focusing on our operations and looking positively to the future of Egyptian economy, we also look forward to promote our products and services offered to best cater our customers, both individuals and corporates. We firmly believe that this approach enables us to contribute in the development of Egypt's economy” said Nevine Loutfy, CEO and Managing Director of ADIB- Egypt. The Retail financing portfolio grew by EGP 0.76 billion or an increase of 37% to reach EGP 2.85 billion, compared to the first half of 2013. The Retail Deposits grew by EGP1.7 billion, or an increase of 17% compared to the same period of 2013, bringing total Retail deposits to EGP11.7 billion at the end of June 2014. The whole sale financing portfolio grew by EGP 1.1 billion or an increase of 33.4% compared to the first half of 2013, to reach EGP 4.3bn. The growth came predominately from top tier local private and public sector companies and SMEs. The SME’s portfolio reached EGP 153 million. Also, the corporate sector Deposits reached EGP 2.1billion at the end June 2014.
The Q2 results reflects the sustainable strength of our core banking businesses in that it did not rely on reducing provisioning and impairment levels as but also through continued conservative approach in managing the legacy remedial portfolio. As a result, the non-performing portfolio as a percentage of total Customers finance dropped to 5.4%, compared to 6.1% at the end of 2013. Excluding the pre-acquisition portfolio, the non – performing financing percentage reached 0.5% compared to 0.9% in 2013. The bank has recovered net provisions of EGP 24.7 million, compared to EGP 20.9 million in Q2/2013.
"Despite of our focus on growth and improvement, our vision remains to be the bank of choice for our customers, relying on our leading position in Islamic banking sector, which enables us to best cater our target segments. We also aim to boost our presence and expand our market share in the future" added Nevine Loutfy.
The bank's total assets reached EGP 17 billion, an increase of 4.2% over 2013 mainly driven by growth in customer financing to reach EGP 7.5 billion or 13.4% compared to Q4 2013 which represents a market share of 1.4% market share. This asset growth was funded by a growth in core deposits by EGP 1 billion, or 7.5% growth. With this growth rate the balance sheet remains considerably liquid with 52.2% financing/deposit ratio. The Capital Adequacy Ratio CAR continued to improve to reach 11.34% at the end of June 2014, compared to 10% regulatory requirement by CBE.
Net Fees and Commission increased by 117% in H1/2014 compared to the same period of 2013 to reach EGP 124.8 million. This growth was mainly attributed to doubling trade and Cash Management volumes. At the same time, in addition Net revenue from funds increased by EGP 93.4 million, or 49.9% growth compared to the same period of 2013, to reach EGP 280.5million. This was driven by the growth in balance sheet coupled with higher spreads. This resulted in H1 2014 total revenue to reach EGP 434.2 million, compared to EGP 265 million in H1/2013 with 63% growth.
"As we continue to monitor the best opportunities available in Egyptian, through investment and establishing new business lines, we remain focusing on our operations and looking positively to the future of Egyptian economy, we also look forward to promote our products and services offered to best cater our customers, both individuals and corporates. We firmly believe that this approach enables us to contribute in the development of Egypt's economy” said Nevine Loutfy, CEO and Managing Director of ADIB- Egypt. The Retail financing portfolio grew by EGP 0.76 billion or an increase of 37% to reach EGP 2.85 billion, compared to the first half of 2013. The Retail Deposits grew by EGP1.7 billion, or an increase of 17% compared to the same period of 2013, bringing total Retail deposits to EGP11.7 billion at the end of June 2014. The whole sale financing portfolio grew by EGP 1.1 billion or an increase of 33.4% compared to the first half of 2013, to reach EGP 4.3bn. The growth came predominately from top tier local private and public sector companies and SMEs. The SME’s portfolio reached EGP 153 million. Also, the corporate sector Deposits reached EGP 2.1billion at the end June 2014.
The Q2 results reflects the sustainable strength of our core banking businesses in that it did not rely on reducing provisioning and impairment levels as but also through continued conservative approach in managing the legacy remedial portfolio. As a result, the non-performing portfolio as a percentage of total Customers finance dropped to 5.4%, compared to 6.1% at the end of 2013. Excluding the pre-acquisition portfolio, the non – performing financing percentage reached 0.5% compared to 0.9% in 2013. The bank has recovered net provisions of EGP 24.7 million, compared to EGP 20.9 million in Q2/2013.
"Despite of our focus on growth and improvement, our vision remains to be the bank of choice for our customers, relying on our leading position in Islamic banking sector, which enables us to best cater our target segments. We also aim to boost our presence and expand our market share in the future" added Nevine Loutfy.
Source:
Mubasher
