EGP1,196 Million Net Profits of ADIB-Egypt in 2020
Positive indicators of consolidated financial results for the fiscal year ending on December 31st, 2020 despite the negative repercussions of COVID-19 pandemic
** ADIB-Egypt strengthens leadership with 10 prestigious awards in recognition of excellence
** CEO: “Financial results demonstrate our strength and ability to adapt to unprecedented market challenges in the face of COVID-19
Cairo: 24March 2021 -Abu Dhabi Islamic Bank-Egypt (ADIB-Egypt) announced its consolidated financial results for the fiscal year ending December 31, 2020 – revealing positive results despite the many economic challenges of that COVID-19 caused over the last year. A net profit after taxes of EGP1,196 million compared to EGP1,228 million in 2019, with a 3% decrease of EGP32 million, was announced. Net standalone profits after taxes reached EGP1,151 million compared to EGP1,103 million in 2019, with a 4% increase of EGP49 million.
The bank's most prominent financial indicators also revealed total revenues growth of 1.3% reaching EGP3,786 million. Total assets increased by 22.5% to reach EGP73.9 billion in 2020, compared to EGP60.3 billion in 2019. The bank succeeded in attracting new deposits, as its balance of deposits increased by 22.5% to reach EGP62.7 billion. Net financing increased by 30% reaching EGP40.2 billion in December 2020. The rise in the net finance portfolio is due to both 29.7% corporate finance growth to reach EGP28.7 billion, and 30.7% retail banking to reach EGP11.5 billion. The rise in deposits is driven by the growth of corporate deposits by about 26% or EGP23.3 billion, and the increase of individual deposits portfolio by about 20% to reach EGP39.3 billion. The treasury unit also achieved growth in liquidity surplus management, with the assets under management portfolio increasing by EGP3.8 billion or 17.7% to reach EGP25.3 billion in 2020.
On the other hand, net profit from fees and commissions recorded an increase of EGP49 million (12%) compared to the previous year, reaching EGP452 million by the end of 2020, while forex revenues decreased by EGP37.8 million or 17% from the previous year to reach EGP EGP182 million. While provisions increased by EGP38.1 million to reach EGP445 million compared to EGP407 million, an increase of 9% compared to 2019.
Commenting on these results, Mr. Mohammed Aly, CEO and Managing Director of ADIB- Egypt, said: "Our 2020 financial results demonstrate the bank's ability to maintain financial stability even in the face of a global economic downturn which the financial sector faced due to the pandemic. We have demonstrated both flexibility and adaptability, quickly adjusting to market dynamics and developments in the working environment, to continue supporting the Egyptian economy and its customers in response to CBE initiatives. We believe that these initiatives and programs ensure the continued safety and resilience of the Egyptian banking sector as well as business continuity during the crisis. These efforts have allowed the sector to weather the toughest global crises, top of which was COVID-19."
"We have focused extensively on growing our business in the best possible way during this crisis whilst continuing to focus our efforts on the implementation of our digital transformation strategy. Digital transformation in the banking sector become even more important during the lockdown. The hi-tech financial solutions utilized supported hassle-free, quick, safe and convenient banking services, becoming indispensable and evolving into the global trend. Across 2020, we launched a variety of new products and services, as part of this plan. Our vision to digitally transform our bank was accelerated by the needs and circumstances of the pandemic, which resulted in the bank winning a number of awards,” he added.
In 2020, ADIB-Egypt was awarded 10 prestigious financial awards in recognition of excellence in serving its individual and corporate clients across various sectors. Among the many awards won by ADIB-Egypt are: Best Social Media Marketing and Services, Best Bill Payment and Presentment, Best Islamic Financial institution for 2020 in Egypt from the international publication “Global Finance”.
ADIB-Egypt also received awards for Best Islamic Bank and Best Digital Bank in Egypt by "IFM”, Best Mobile Banking Services and Best Innovative Cards in Egypt awards by “The Global Economics”, and “Best Retail Bank in Egypt” by “MEA Finance”. ADIB-Egypt was also recognized across the Islamic banking industry as the “Best Islamic Bank in Egypt” by “World Finance News” and as Egypt’s Islamic Bank of the Year for 2020 by “The Banker”.
Award-winning ADIB-Egypt was the result of an acquisition of the National Bank for Development (NBD) by a UAE consortium between Abu Dhabi Islamic Bank and Emirates International Investment Company (EIIC) in 2007. At present, the bank is deemed one of the most prominent financial institutions that have ever worked in Islamic banking in Egypt.
ADIB-Egypt employs a well-trained team of over 2,000 employees working closely to provide more services and banking products to fulfill customer needs through a nationwide network of 70 branches, 105 ATMs. To achieve integration in banking services, the bank established “ADIB Capital”, the investment arm of the bank, and ADILease for financial leasing. The bank continues to work to promote its standing as one of the largest Islamic banks and financial services institutions. In 2020, ADIB Egypt established two additional companies,ADIB Consumer FinanceandADIB Microfinance, in order to fulfill growing customer needs and provide convenient and instant service with the use of digital financial technology.