Abu Dhabi Islamic Bank (ADIB) said its Q1 2021 net profit surged by 125 percent to AED608 million compared to AED 270 million in Q1 2020, and up 26 percent against Q4 2020. The growth in net profits reflects the strong underlying performance across the business, the bank said in a statement. Revenue increased 3.3 percent to AED1,336 million from AED1,292 million in the same period last year with non-funding income growing by 30 percent offsetting the impact of low rate environment.
Operating Expenses were reduced by 7 percent year-on year due to the successful implementation of technology-led initiatives that helped reduce the cost of sales and customer acquisition while also streamlining internal processes. ADIB consistently demonstrated balance sheet strength with assets growing by 6.5 percent mainly due to a growth in customer financing by 5 percent compared to Q1 2020.
The bank has made a strong start to 2021, in what continues to be an uncertain economic environment related to the COVID-19 pandemic. Their net profit surged 125 percent compared to Q1 2020 and up 26 percent versus Q4 2020. This reflects their strong underlying performance across our all businesses, partially driven by a rapidly improving economy which allowed us to decrease our impairment by 66 percent compared to Q1 2020.
This solid first quarter was also achieved through continued cost discipline which saw operating expenses improve by 7 percent year on year, as well as sustained business momentum and targeted strategic initiatives which partially offset the headwinds from record low rates and the overall economic slowdown brought about by the pandemic.