Abu Dhabi Islamic Bank-Egypt Announces Financial Results for Q1/2014
- Posted Net Income EGP 57 Million in Q1/2014, compared to EGP 11 Million in Q1/2013, a growth rate of 400%
- Total revenues reached EGP 218 million in Q1/2014, an increase of EGP 101 million or 86.1% compared to Q1/2013, and EGP 62 million or 39.7% compared to Q4/2013
- Customer financing amounted to EGP 7 billion, a growth rate of 6.2% compared to Q4/2013
- Core Deposits grew by EGP 0.34 billion a 2.6% increase versus Q4 2013 to reach EGP 13.47 billion
Cairo, Egypt: May, 2014 - Abu Dhabi Islamic Bank (ADIB) – Egypt recently announced its financial results for Q1/2014. The bank reported net income of EGP 57 million in Q1/2014 compared to EGP 11 million in Q1/2013, a growth rate of 400%. The continued positive financial results is considered proof of the successful policies undertaken by the bank.
On the other hand customer financing continued to growth to reach EGP 7 billion, an increase of 6.2% compared to Q4/2013. This asset growth was funded by growth in core of EGP 0.4 billion, or by 2.6%, compared to a market growth rate of roughly 1%. With this growth rate the balance sheet remains considerably liquid with 51.8% financing / deposit ratio. Also Capital Adequacy Ratio continued to improve to reach 11.1% at the end of March 2014 versus a regulatory requirement of 10%.
The net fees and commissions also witnessed an increase of more than 200% compared to Q4/2013, to reach EGP 73million. This was driven by more than doubling trade and Cash Management volumes. In addition net revenues from funds increased by EGP 19.6 million or 17.3% to reach EGP 132.9 million, driven by the growth in balance sheet coupled with higher spreads to reach 4.33%, which consequently resulted in Q1/2014 total revenue of EGP 281million compared to EGP156million or 39 % in Q4/2013.
"ADIB-Egypt continued its steady performance during Q1/2014 and achieved considerable progress in its financial results. These results were coupled with a diversified portfolio of new products and services to better cater to our customers. We are confidently progressing towards the Bank’s aspirations through implementing our customer centric strategy and our approach of excellence in the banking services” said Nevine Loutfy, CEO and Managing Director of ADIB- Egypt.
Taking a closer look at ADIB- Egypt financial results the Corporate financing portfolio grew by EGP 0.3 billion, or 5.7% in Q1/2014 to reach EGP 4.2bn. The growth came predominately from top tier local companies and SMEs.
The Retail financing portfolio grew by EGP 0.1 billion or 6.9% in Q1/2014 to reach EGP 2.5 billion. This growth was achieved mainly from personal finance. Over the last quarter and despite the volume growth the general provisions have decreased by EGP 2 million, due to the improvement in delinquencies as a result of undertaking a vigorous collection strategy. Retail deposits portfolio grew by EGP 0.4 billion, or 3.7% in Q1/2014 to reach EGP 11.5 billion.
The bank succeeded in achieving outstanding financial results as a result of focusing on raising the quality of services offered, and providing banking services to cater - the needs of different categories of clients. ADIB-Egypt continued to build its human resources that represent one of its most important assets and rolled out its 2014 Employee Development program. As a result the percentage of Training hours increases by 47% during Q1/2014. ADIB- Egypt also continued to invest in its infrastructure network and information security to improve the protection of customer information and privacy.