ADIB-Egypt reports significant jump in 2018 consolidated net profits
o Consolidated financial results for the year ended December 31, 2018 part of the bank’s ongoing growth in Egypt
o ADIB-Egypt net profits surge 35% to reach EGP 850.23 million compared to EGP 631.5 million in 2017
ADIB-Egypt released its consolidated financial results for the year ended December 31, 2018, which reflected its strong performance throughout the year, underpinning its success in the Egyptian market.
The bank saw a significant rise in its consolidated profits to record a net profit after taxes of EGP 850 million in 2018, compared to EGP 632 million in 2017, an increase of 35%. The bank’s total revenues amounted to EGP 3.105 billion, an increase of 18%, as opposed to the previous year’s EGP 474 million. This increase was driven by a growth in deposits from EGP 10.06 billion in 2017 to EGP 39.9 billion in 2018, an increase of 34%, alongside an increase of EGP 7.7 billion, or 47%, in facilities to reach EGP 24.3 billion.
The bank’s corporate credit portfolio increased by 45.1% to EGP 17.3 billion in 2018, with its deposit portfolio reaching EGP 12.5 billion, a 53.2% increase from the previous year. The bank’s retail banking portfolio also grew by 32.8% to reach EGP 6.8 billion and its retail deposit portfolio jumped 26.4% to reach EGP 27.7 billion.
The bank’s treasury assets portfolio increased by 24.8%, or EGP 3.97 billion, to reach EGP 19.96 billion in 2018. FX revenues jumped by EGP 20 million to reach EGP 153 million, an increase of 15% compared to 2017. Also, the net income from treasury investments and deposits grew by EGP 663 million, a 40% increase from the previous year. Provisions soared by 77% to reach EGP 235 million versus EGP 133 million in 2017.
The bank enforced its policy of maintaining a strong capital base to support steady business growth and comply with capital regulatory requirements, reporting a capital adequacy standard of 12.51%.
In 2018, ADIB-Egypt settled a dispute with the Tax authority after paying EGP 994 million in taxes on T-Bill returns and bonds for the fiscal years 2009 to 2017. The bank, however, did not withdraw the tax-related lawsuit given its strong legal position based on the opinion of its legal and tax consultants.
ADIB-Egypt CEO and MD, Mohamed Aly, expressed his pride in the results achieved during 2018, which was reflected in the profits, stressing that the bank will continue its successful endeavors in Egypt by achieving outstanding performance and real achievements.
He reiterated ADIB-Egypt’s strict adherence to its service policies on all economic and social levels through a range of development plans and procedures to bolster the bank's position, increase market share and boost competitiveness. He also added that the bank will continue its leading CSR role as one of its core strategies, and went on to thank the bank's customers for their confidence and trust.
“We will continue to develop our Sharia’a compliant products and services to serve the corporate, retail, SME, and other market segments. We will also keep improving the online banking service to serve both retail and corporate customers,” he noted.
“We will do our best to develop innovative financial solutions that keep pace with the rapid global developments and changes in the banking sector,” Aly concluded, thanking the bank’s employees for their efforts that resulted in the strong performance throughout the year.
In 2018, ADIB-Egypt won eight international awards in acknowledgment and appreciation of its outstanding achievements in various business areas.
Earlier in the year, Global Finance Magazine recognized ADIB-Egypt as the ‘Best Islamic Financial Institution in Egypt’ for 2018. Throughout the year, the bank received six awards from top institutions, including Banker Africa and Islamic Business and Finance magazines – part of the CPI Financial Group - for its distinguished performance and stellar financial results.
ADIB-Egypt received four awards from Banker Africa; Best Islamic Bank in North Africa, Best Retail Islamic Bank in North Africa, Best SMEs Bank in North Africa and Best SMEs Bank in Egypt. It also won Best Retail Islamic Bank and Best Islamic SMEs Bank awards from Islamic Business and Finance Magazine and the Best Islamic Bank in Egypt 2018 award from Islamic Finance News (IFN).