Abu Dhabi, UAE – Emirates International Investment Company (EIIC) has acquired a 7.6 percent stake in Abu Dhabi Islamic Bank (ADIB) from Mubadala Investment Company.
The transaction brings EIIC’s total shareholding in ADIB to 47 percent, demonstrating strong confidence in the prospects for the long-term growth of the UAE’s second-largest Islamic lender by assets.
EIIC has interests across diverse sectors including banking, asset management, real estate, hospitality, fintech, as well as food and agriculture. This acquisition is in line with Mubadala’s strategy to create long-term value by optimizing a global portfolio of investments across a variety of sectors.
For the first quarter of 2023, Abu Dhabi Islamic Bank (ADIB) reported a growth in net profit of 54 percent to reach AED1.1 billion (0.29 billion), driven by significant growth as well as higher margins.
The bank reported record revenues of AED2 billion (0.54 billion) for the same period, up by 45 percent year-on-year.
This was underpinned by an 81 percent growth in funded income to AED1.4 billion ($0.27 billion), derived from growth in customer financing and higher margins.
ADIB also delivered a record return on equity of 23.4 percent. The Shariah-compliant bank continues to attract customers, welcoming 46,000 new customers in the first three months of 2023 alone.
This transaction highlights the positive outlook for ADIB and the banking sector in the UAE.
The strong financial results for the first quarter of 2023 demonstrate ADIB’s ability to weather challenging economic conditions and deliver robust financial performance.
The acquisition by EIIC further strengthens ADIB’s position in the market and underscores the confidence of investors in the bank’s long-term growth prospects.
Overall, this transaction is a positive development for ADIB, EIIC, and the banking sector in the UAE. It highlights the strong fundamentals of ADIB’s business and the confidence of investors in the bank’s long-term growth prospects.