The nation's second biggest Islamic lender by assets, Abu Dhabi Islamic Bank Group posted a three per cent increase in its net profit of Dh328.5 million for third quarter of the year. Despite the prevailing challenging market conditions, and an increasing number of regulatory changes, the performance from the main banking business remained strong. The bank's net profit grew by 14.5 per cent to Dh405.7 million in Q3 2011, ADIB said in a statement. "Revenues were up by 12 per cent to Dh924.1 million, total credit provisions and impairments rose 34 per cent Dh202.1 million," the bank said in its earning report. Net customer financing has increased five per cent to Dh50.9 billion, while customer deposits grew 12.5 per cent to Dh61.2 billion. Total assets as of 30 September 2012 were Dh81.5 billion, representing an increase of 9.9 per cent. ADIB continued its conservative policy by taking an additional Dh151.3 million in credit provisions to ensure a healthy pre-collateral non-performing asset coverage ratio of 80.1 per cent. The group continued the quarterly impairment review of the portfolio held by its real estate subsidiary, Burooj Properties and as a result made further impairments of Dh47.5 million in this regard. ADIB remains one of the most liquid banks in the UAE, with advances to stable funds ratio of 78.6 per cent, customer financing to deposits ratio of 83.1 per cent and net due from banks and deposits with Central Bank totaling Dh11.1 billion. The focus on Retail Banking underpinned by ADIB's number 1 rating - for the second consecutive year - for customer service saw the customer base increase by 10.0 per cent year-on-year to 493,298 customers. Tirad Mahmood chief executive officer of ADIB was skeptical of the global economic environment, as it "remains challenging. " The uncertainty resulting from the malaise in Europe preoccupies decision makers and regulators around the world," he said. However, Mehmood was optimistic over the positive domestic economic achievements. "We're encouraged by the recent positive Abu Dhabi economic data, our customers continue to feel the effects of the prolonged crises and growth in the banking sector as a whole remains subdued," the chief executive officer said. In his outlook for the year, he said: "Our outlook has not changed and we remain concerned about global and regional growth rates and the impact on our markets. While the continued introduction of new regulations is proving to be challenging, we are confident that ADIB is well positioned and in this regard will continue our practice of being a meaningful and constructive partner in supporting these changes. ADIB operations in the United Kingdom and Iraq continued to gain momentum and plans to open branches in Qatar and Sudan by year-end remain on track. Khaleej Times
