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We have a (small) handful of earnings this morning, including the Commercial Bank of Dubai, Abu Dhabi Islamic Bank, and International Holding Company subsidiary Palm Sports all reporting 1Q 2024 results.
ABU DHABI ISLAMIC BANK-
Abu Dhabi Islamic Bank (ADIB) saw its net income after tax increase 32% y-o-y in 1Q 2024 to AED 1.45 bn, according to the bank’s earnings release (pdf). ADIB’s revenues grew 24% y-o-y during 1Q 2024, reaching AED 2.5 bn on the back of expansion in every business segment and product line. The revenue surge was also driven by a 33% y-o-y increase in non-funded income, boosted by a 40% growth in fees and commissions.
Total assets and deposits contributed to the strong growth: ADIB’s total assets grew by 13% y-o-y during the first quarter of the year, fueled by 8% y-o-y growth in financing and 25% growth in investments. Customer deposits climbed 13% to AED 160 bn, primarily propelled by a 9% increase in current and savings accounts, which now make up 66% of total deposits.
COMMERCIAL BANK OF DUBAI-
The Commercial Bank of Dubai (CBD) saw its net income after tax rise 21.9% y-o-y to AED 701 mn in 1Q 2024, according to the lender’s earnings release (pdf). CBD attributed its success to the expansion in its loan book and current and savings accounts which drove an increase in the lender’s net interest earnings. This growth was further bolstered by non-funded income, which surpassed corporate tax charges, according to the statement.
A good quarter overall: The lender saw a 10.9% y-o-y increase in operating income to AED 1.4 bn. This growth was underpinned by a 7.9% y-o-y rise in net interest income, supported by loan and current and savings accounts expansion and high market interest rates. CBD’s net impairment losses were down 23.1% y-o-y.
PALM SPORTS-
International Holding Company sports management subsidiary Palms Sports saw its net income before tax double during 1Q 2024 to reach AED 16.8 mn, according to the company’s earnings release (pdf). Palms Sports’ total revenues increased by 207% y-o-y, reaching AED 285 mn during the quarter.
REMEMBER- Palms Sports saw its net income fall 21% y-o-y to AED 105 mn in 2023. The IHC-backed company attributed the current growth in net income to its new investment strategy, which includes securing long-term service contracts and embarking on an ‘acquisition spree’ across diverse sectors to expand its range of services.
