Abu Dhabi Islamic Bank (ADIB) saw its bottom line increase 45% y-o-y in 2023 to a record AED 5.25 bn, according to the bank’s earnings release (pdf). The bank’s net income in 4Q 2023 reached AED 1.5 bn, up 29% y-o-y.

Funded and non-funded income led the record growth: ADIB’s revenues during the year rose 36% y-o-y to AED 9.3 bn. The revenue surge, driven by a 47% y-o-y increase in funded income to AED 6.1 bn due to heightened transaction volumes and improved gross margins, was also complemented by an 18% y-o-y rise in non-funded income to AED 3.2 bn on the back of increased fees and commissions.

Total assets and deposits also grew: ADIB’s total assets rose 14% y-o-y to AED 193 bn in 2023, driven by a 6% y-o-y surge in gross financing and a 26% y-o-y increase in investments. The bank’s total customer deposits also saw a 14% y-o-y increase to AED 157 bn, driven by a 9% y-o-y surge in current and savings accounts, which now comprise 65% of ADIB’s total deposits.

What does 2024 look like for ADIB? “Looking ahead for 2024 and while the global economic outlook remains uncertain, we are confident that our strong financial position, strong capital and liquidity ratios will enable us to capture business [prospects] and identify new growth areas and continue to see broad-based income momentum across the group,” ADIB CEO Nasser Abdulla Al Awadhi said.

Dividends: The bank’s board is proposing a dividend of 71 fils per share, up from 49 fils per share in 2022.

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