Abu Dhabi Islamic Bank (ADIB) Q4 2024 earnings summary

Executive summary

• Achieved record net income before tax of AED 6.9bn, up 26% year-over-year, and net income after tax of AED 6.1bn, up 16.2% year-over-year, with ROE at 27.9%.

• Revenue rose 14.4% year-over-year to AED 10.6bn, driven by strong business volumes and higher non-funded income.

• Total assets grew to AED 225.9bn, up from AED 192.8bn at the end of 2023.

• Customer deposits reached AED 182.7bn, a 16.3% increase year-over-year.

• Proposed cash dividend of 83 fils per share, up from 71 fils last year, equivalent to 50% of net profit, and AED 3.03bn for 2024.

Financial highlights

• Net income before tax: AED 6.9bn (+26% YoY); after tax: AED 6.1bn (+16.2% YoY).

• Revenue: AED 10.6bn (+14.4% YoY); expenses: AED 3.1bn (+3% YoY).

• Total assets: AED 225.9bn (+17% YoY); gross customer financing: AED 147.1bn (+22% YoY); deposits: AED 182.7bn (+16% YoY).

• Cost/income ratio improved to 29.6% (down 336bps YoY).

• Provision for impairment decreased to AED 619.7m from AED 760.3m.

Outlook and guidance

• Management expects continued strong profit growth and capital-efficient income in 2025.

• FY 2025 guidance: ROE >25%, cost/income ratio <30%, net profit margin moderating toward 4%.

• UAE GDP growth forecast at 3.9% for 2025; inflation expected to remain modest.

• Opex growth to support expansion, with disciplined management and digital efficiencies.

• Proposed cash dividend of 83.43% of paid-up capital (AED 3,030.3m) for 2024, pending shareholder approval.