Abu Dhabi Islamic Bank (ADIB) Q2 2023 earnings summary

Executive summary

• H1 2023 net profit reached EGP 2.168bn versus EGP 1.017bn; total assets were EGP 139.177bn at June 30, up from EGP 116.827bn at year-end 2022.

• Customer deposits totaled EGP 110.501bn, while net financing and facilities to customers stood at EGP 61.070bn at June 30, 2023.

Financial highlights

• H1 net income from funds was EGP 3.894bn versus EGP 2.147bn; net fees and commissions were EGP 846.1m versus EGP 391.7m.

• H1 net profit before tax was EGP 3.097bn versus EGP 1.583bn; income tax expense was EGP 929.5m versus EGP 560.6m.

• H1 net trading income rose to EGP 218.4m from EGP 73.3m; administrative expenses were EGP 886.8m versus EGP 737.5m.

• H1 expected credit loss charges were EGP 654.9m versus EGP 228.8m; net profit attributable to shareholders was EGP 2.165bn versus EGP 1.024bn.

Outlook and guidance

• The CBE raised overnight deposit, lending and main-operation rates by 100 bps on Aug. 3, 2023, to 19.25%, 20.25% and 19.75%, respectively; the credit and discount rate rose to 19.75%.

• Transition planning for EIBOR focused on assessing effects on existing contracts and yield-rate risk, and adding provisions for use of alternative reference rates.