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ADIB Egypt registers first positive net income since 2007 - Daily News Egypt

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ADIB Egypt registers first positive net income since 2007

Net income improves by EGP 958m between 2012 and 2013, marking the first year of positive net income since the Emirati consortium acquisition in 2007.

Abu Dhabi Islamic Bank (ADIB) in Egypt announced its financial results for 2013, reporting its first positive net income since 2007 with EGP 103m. In 2012, the bank’s net income recorded EGP 855m.

ADIB’s gross revenues also surged in 2013, recording EGP 580m, compared to an EGP 855m net loss in 2012.

Nevine Loutfy, the CEO and Managing Director of ADIB-Egypt, attributed the improvement to a company restructure that included developing a “Sharia-compliant diversified portfolio and new products and services that cater to customers’ financial needs.”

“We extend our appreciation to our customers, our stockholders for their continued support and trust and to our employees for their dedication and efforts,” Loutfy said.

During the fourth quarter of 2013 (Q4 2013), the bank delivered EGP 156m in gross revenues – an increase of about EGP 40m, or around 34.9%, from the same period last year. In Q4 2013, net income reached EGP 34m, a notable 106% increase compared to the past year.

“The balance sheet continued to grow, with total assets of EGP 16.4bn, an increase of 12.6% over 2012, driven mainly by a 23.8% growth in customer finance, compared to circa 9% total market growth, while total deposits increased by EGP 1.6bn, or 14.4%, to reach EGP 13.1bn as of 31/12/13,” the bank said in an official statement.

The bank’s retail portfolio grew by 26%, around EGP 468.7m, during the last 12 months to reach EGP 2.3bn.The retail deposits totalled EGP 11.1bn in 2013, an EGP 1.5bn growth compared to 2012.The corporate bank finance portfolio also improved reaching EGP 4.1bn by December 2013, an EGP 812.5 growth compared to last year. ADIB attributed the growth to top-tier local private and public sector companies.

“Equally encouraging was the growth in commission and fee income, which improved by EGP 51.6 million or 86% growth compared to prior year,” the bank said. “ This growth was mainly attributed to bank’s success arranging syndicated finance to a number of large companies in Egypt.”

The ADIB’s small and medium enterprises finance programme, which was launched in January 2013, reached EGP 76.7m by the end of the year.

Loutfy said the positive results achieved in 2013 led the bank’s management to develop an ambition plan for 2014 centred on customers.

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