Abu Dhabi Islamic Bank Egypt posts net profit growth in Q3

Abu Dhabi Islamic Bank Egypt (ADIB Egypt) said on Sunday that its net profit for the third quarter of the year rose to 313.6 million Egyptian pounds ($20.05 million).

Earlier, the subsidiary of the Emirati Shariah-compliant lender made a net profit of 308.4 million pounds for the third quarter of 2019.

Customers’ deposits have totalled 58.88 billion pounds at the end of September, up from 51.16 billion pounds at the end of December. Total assets also increased to 70.76 billion pounds.

Loans and facilities jumped to 39.8 billion at September-end, compared with 30.7 billion pounds at December-end.

Earlier this month, the Abu Dhabi-based lender reported a net profit of AED 1.12 billion ($304.9 million) for the first nine months of 2020.

The bank said it delivered solid financial performance in the third quarter supported by a rebound in economic activity and positive client sentiment despite an unprecedented global backdrop arising from the coronavirus pandemic.

This resulted in a net profit of AED 533.8 million in the third quarter of the year, an increase of 68 percent compared to the second quarter and 98 percent compared to the first quarter, driven by strong revenues and rigorous cost efficiencies.

However, net profit for the third quarter was down 14 percent compared to the same period last year due to an increase in impairment charges and lower revenues, predominantly driven by net profit margin compression that was partially mitigated by a cost reduction of 9 percent.

According to the Emirati bank, this was achieved by successfully implementing a number of initiatives, including digital initiatives that helped to reduce the cost of sales and customer acquisition, and by streamlining internal processes. The cost synergies created capacity for the bank to continue investments in digital and strategic initiatives to attract new customers and support ADIB’s long-term growth, it added.