Abu Dhabi Islamic Bank profits decreased by 55% to reach 269.7 million dirhams during the first quarter of 2020 compared to 600.3 million in the same quarter last year.

> According to Al-Bayan, this decline is mainly due to the increase in provisions in response to the difficult operating environment, in addition to the decrease in revenues due to the exceptional circumstances that the markets are currently experiencing.

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The bank was able to maintain strong levels of capital, as the capital adequacy ratio reached 18.08% to remain above the regulatory limits required, and its performance was strong in liquidity The facility to deposit ratio was 80.3%.

The financial results also showed a decrease in net revenue to 1.292 billion, compared to an increase in provisions for financing and investment losses to 387.1 million, and the net assets of customer financing increased 1.6% to 79.4 billion.

The bank recorded a net profit margin that is among the highest in the sector at 3.8%, driven by the positive effects of the low cost of financing thanks to the high current account balances and savings accounts. Customer deposits in current accounts and savings increased 1.3% year on year to 70.7 billion, and they constitute 71.6% of total deposits of 98.9 billion, the value of operating expenses amounted to 634.9 million, down 2.3%, and total assets fell to 122.7 billion, down 2.6%, and the rate of facilities To stable funds 85.1% vs. 82.4%.

While the facilities to deposits ratio reached 80.3%, which reflects good cash flow, the adequacy ratio of the first part of the shareholders ’equity stabilized at 12.30%, while the adequacy ratio reached 12.3%. Capital 18.08%, well above regulatory requirements.

Mazen Mannaa, CEO of Abu Dhabi Islamic Bank Group, said: The difficult macroeconomic environment affected our profits during the first quarter as a result of the repercussions of the coronavirus pandemic corona, as revenue decreased As a result of lower profit rates, and the uncertainty about the economic outlook prompted us to increase the provisions for financing and investment losses, in anticipation of the possibility of declining financing quality.

He continued: We succeeded in maintaining capital stability and cash liquidity, and this allowed us to support our customers during this difficult period, as we launched a set of support and support programs for customers , And we keep up with all of their changing needs. We also work closely with the government and the central bank to ensure that our customers have the liquidity they need to continue operating.