Q3 2025 Abu Dhabi Islamic Bank PJSC Earnings Call Transcript
Key Points
- Abu Dhabi Islamic Bank (ADX:ADIB) reported a 20% year-on-year growth in total assets, reaching AED270 billion.
- The bank's nonperforming assets ratio improved significantly to 3.3%, down from 8.8% previously.
- Net profit growth before tax was strong at 16% year-on-year, reaching AED6.1 billion.
- The cost-to-income ratio improved to 28.3%, driven by enhanced efficiencies and disciplined cost management.
- Customer deposits increased by 23% year-on-year, maintaining a healthy mix between current and saving deposits.
- Operating expenses grew by 11%, which, although lower than revenue growth, still represents a significant increase.
- Net profit margin slightly decreased to 4.17% due to rate cuts and increased competition.
- The cost of risk increased to 46 basis points, reflecting the bank's balance sheet growth.
- There is a potential risk of lower property prices in Dubai, which could affect volume growth trends.
- The bank faces competition from new entrants like Revolut, which could impact fee income in the long run.
Portions of this transcript marked (audio in progress) indicate audio problems. The missing text will be supplied if a replay becomes available.
(audio in progress) A phase of productivity. So costs have been increasing but always ensuring that revenue is growing at faster pace and hence, focus more on productivity rather than just cost reduction, and that's why you see that consistent improvement in our cost-to-income ratio.
From a balance sheet perspective, again, exceptional performance. We are seeing growth in our total assets, we will talk about it in a second when I send because of the numbers, but hitting AED270 billion of total assets, representing almost a 20% growth year on year. and 26% on customer financing, I think, has been a phenomenal performance.
On the ADIB liability side, we have continued our strategy in terms of ensuring that we are funding before financing. And hence, you will see that the quality of our funding has remained to be resilient
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