Abu Dhabi Islamic Bank (ADIB) incurred a 52.2 percent slump in its first quarter net profit after calculating tax and Zakat, media reports said. The net profit slumped to Dh 587.6 million compared to Dh 1.23 billion a year ago.
Chairman of ADIB, Jawaan Awaidah Al Khaili, told the media, “Our levels of capital and liquidity continue to remain strong, with both our common equity Tier-1 ratio and advances to deposits ratio increasing from the end of the previous quarter.”
The Abu Dhabi-based bank’s losses are caused by a boost in impairment charge due to revenue slump and volatile market conditions amid the Covid-19 crisis. The pandemic has disrupted the bank’s credit provisions and impairments as charges in the first quarter increased to Dh 708.6 million from Dh 345 million a year earlier.
Furthermore, the bank recorded a net revenue of Dh 2.56 billion in the first quarter as compared to Dh 2.89 billion a year earlier. In terms of assets, the bank saw a 1.2 percent slump this year, resulting in 124.4 billion in June compared to DH 125.9 billion in December, 2019.
It is interesting to see that the bank’s net profits slumped by 55.1 percent which is AED 269.7 million in the first quarter , as compared to AED 600.3 million in the corresponding period of 2019.
After Mazin Manna, the bank’s chief executive, stepped down from the position earlier this year, with that ADBI appointed its chief operating officer as the interim head of the organisation.