Abu Dhabi - Mubasher: Abu Dhabi Islamic Bank (ADIB) saw net profits of AED 269.7 million in the first quarter of 2020, decreasing by 55.1% from AED 600.3 million in the corresponding period of 2019.
The decline in net profits resulted from an increase in provisioning due to the challenging operating environment amid the coronavirus (COVID-19) pandemic and lower revenues, according to a press release on Thursday.
The group's net revenues contracted to AED 1.292 billion in the first three months of 2020 from AED 1.436 billion in the same period of 2019.
The lender's total assets decreased by 1.5% to AED 122.712 billion in Q1-2020 from AED 124.632 billion in the year-ago period.
The net customer financing reached AED 79.4 billion in the Q1-2020, up 1.6% from AED 78.1 billion at the end of Q1 2019 because of the growth in corporate banking financing.
ADIB's CEO, Mazin Manna, said: "Our profits in the first quarter of 2020 have been impacted by the challenging macro-economic environment caused by the Covid-19 pandemic and lower revenue due to rate cuts."
Manna added: "Given the uncertain economic outlook we increased our impairment allowances and our provisioning in anticipation of a potential deterioration in credit quality."
Noteworthy to highlight, in 2019, the bank reported a 4% year-on-year profit hike to AED 2.6 billion, compared to AED 2.5 billion a year earlier.
