Abu Dhabi Islamic Bank (ADIB) Egypt Announces its Third Quarter Financial Results
ADIB posted remarkable net profit of EGP 34.9 million for Q3 and EGP 68.8million for first nine months of 2013
Cairo, November 6th, 2013 – Abu Dhabi Islamic Bank (ADIB) Egypt recently announced its financial results for the first nine months of 2013, highlighting outstanding growth. In Q3 FY13, the bank's net profit reached EGP 34.9 million, bringing accumulated net profits for the first nine months of the year to EGP 68.8 million and representing growth of EGP 329.7 million, compared with net losses of EGP 260.9 million during the same period in 2012.
"Despite the Egyptian economy’s slow recovery rate in recent months, ADIB Egypt has maintained to report strong progress in its financial results,” said Nevine Loutfy, CEO & Managing Director of ADIB Egypt. “Following the achievement in Q1 of our first positive net income of EGP 11.4 million since the acquisition by the Emirati Consortium in September 2007; the second quarter witnessed double the net Income of Q1 to reach EGP 22.5 million and the third quarter surpassed this to reach EGP 34.9 million with an increase of 54.7% over Q2 bringing accumulative net profits for the first nine months of the year to EGP 68.8 million.”
ADIB Egypt's transformation came as a result of the successful policies that have been implemented in recent years aimed at strengthening the bank’s financial position. A crucial part of the bank's profit-realization strategy was a result of the decision to cover the provision gap of EGP 950 million in non-performing loans at one time, rather than reimbursing them in installments through 2014. This step allowed ADIB Egypt to adjust the balance sheet and increase capital adequacy ratio to 11.28%, helping the bank meet the Basel II criteria issued on 09/30/2013.
ADIB Egypt has also worked consistently to support growth across all business sectors including wholesale and consumer banking sectors, while creating a customer-centric bank that focuses on providing the best customer service possible.
A number of ADIB Egypt's key business sectors have grown over the first nine months of 2013, with the bank's financing portfolio increasing from EGP 880 million to EGP 6.2 billion, marking a growth margin of 16.5%, of which the wholesale banking sector comprises EGP 3.8 billion. The growth was largely achieved as a result of large corporate customers and public sector companies. Additionally, the bank took a leading role in managing and arranging the first syndication that was executed under the umbrella of Moudarba system. Moreover, the small and medium-sized enterprises (SMEs) sector achieved growth of EGP 91 million.
ADIB Egypt’s consumer banking sector also contributed to the bank’s growth by offering a total EGP 2.1 billion in financing to consumers.
Total deposits grew substantially by 7.1% to reach EGP 12.3 billion in the first nine months of 2013. This growth was achieved through both the consumer banking and wholesale sectors, with the focus on increasing the current and saving accounts portfolio, while maintaining a high level of liquidity with a finance-to-deposit ratio of 48%.
Nevine Loutfy added, “The outstanding results that ADIB Egypt has achieved during the first nine months of the year, come as a direct result of the improved performance indicators. We have worked consistently to implement solid policies that ensure we maintain moderate risk rates. We will continue to move forward with our development plans and strive to achieve growth in all aspects of our business. We are committed to providing excellent service to our customers to ensure ADIB Egypt maintains its leadership position in the Egyptian market.”.