Dubai — Abu Dhabi Islamic Bank (ADIB) Group on Monday reported a net profit of Dh590.4 million in the first quarter of 2018 — up 2.2 per cent compared to Dh577.5 million in the first quarter of 2017 — driven by higher fees and commissions, as well as disciplined expense and credit-loss management.

Group net revenues for the first quarter 2018 decreased by 0.7 per cent year on year to Dh1.36 billion.

Total assets as of 31 March 2018 were Dh124.1 billion, representing an increase of 1.3 per cent from Dh122.5 billion at the end of 31 March 2017, and an increase of 0.7 per cent from Dh123.3 billion at 2017 year end.

The bank’s customer deposits were up 1.2 per cent year-on-year to reach Dh102.2 billion at the end of 31 March 2018. As a result, ADIB remains one of the most liquid banks in the UAE, with advances to deposits ratio of 74.4 per cent.

“We continue to attract new customers to the bank and are now on the brink of crossing the one million customer milestone having added 58,000 over the last year. People increasingly understand the benefits of Islamic banking and we are growing market share in this expanding segment of the financial industry,” said Khamis Buharoon, ADIB Vice-Chairman and acting CEO.

ADIB has maintained its conservative approach on credit extension and capital management. This led to a year-on-year decrease of 1.7 per cent in customer financing assets to Dh76 billion at the end of 31 March 2018.

Credit provisions and impairments for the first quarter 2018 decreased by 8.8 per cent to Dh149.9 million compared to Dh164.4 million for the same period last year.

Provisions decreased by 10.2 per cent compared to Dh166.9 million in the fourth quarter of 2017.

ADIB recorded healthy customer financing-to-deposits ratio of 74.4 per cent. The bank maintained its position as one of the most liquid financial institutions in the UAE. The main driver of the best-in-market customer financing-to-deposits ratio remains ADIB’s continued focus on building long-term relationships which saw customer deposits increase by 1.2 per cent year-on-year to reach Dh102.2 billion at the close of first quarter 2018.

The capital adequacy ratio under Basel III at the end of first quarter 2018 was 16.02 per cent compared to 16.09 per cent at year and 2017 after adjusting for 2017 dividend.

“Despite operating in the region’s most competitive banking environment, we believe ADIB is well positioned to take advantage of the UAE’s economic development and diversification, ensuring that our financial strength and focus on innovation delivers a compelling offering to customers,” said Buharoon.