Abu Dhabi Islamic Bank: The rights issue debate

Research evidence excerpt

Abu Dhabi Islamic Bank: The rights issue debate

iQprofile SM Abu Dhabi Islamic Bank

Key Income Statement Data (Dec) 2024A 2025A 2026E 2027E 2028E Company Sector

(AED Millions) IFRS IFRS IFRS IFRS IFRS Banks-Multinational/Universal

Funded Income 7,497 8,882 9,721 10,621 11,700

Net Fee Income 1,807 2,100 2,109 2,356 2,500

Securities Gains / (Losses) 426 446 539 561 584 Company Description Other Income 902 876 885 958 1,037

Total Non-funded Income 3,135 3,422 3,533 3,875 4,120 ADIB is the Islamic Bank of Abu Dhabi, with 5-6% market

Total Operating Income 10,632 12,304 13,254 14,496 15,820 share in Islamic financing and deposits in the UAE. Some

Operating Expenses (3,145) (3,525) (3,970) (4,253) (4,523) 55% of UAE nationals bank with ADIB. Retail represents

Pre-Provision Profit 7,487 8,779 9,284 10,244 11,298 57% of its lending book - the largest among covered UAE

Provisions Expense (620) (678) (1,072) (1,217) (1,348)

peers. ADIB operates across seven markets, including Egypt,

Operating Profit 6,868 8,101 8,212 9,027 9,950

Non-Operating Items 0 0 0 0 0 KSA, Iraq, the UK (real estate) and Sudan. The two main

Pre-Tax Income 6,868 8,101 8,212 9,027 9,950 shareholders are Emirates International Investment

Net Income to sh/holders 5,424 6,340 6,382 7,048 7,803 Company (39%) and Mamoura Diversified Global Holding

Adjusted Cash Earnings 5,424 6,340 6,382 7,048 7,803 (7.6%).

Key Balance Sheet Data

Total Assets 225,910 280,753 303,347 337,043 371,768

Average Income Earning Assets 174,105 212,993 249,224 275,330 306,033 Investment Rationale

Risk Weighted Assets 159,983 183,637 204,736 227,479 250,916 We like ADIB's superior profitability and below-peers

Total Gross Customer Financing 147,119 185,589 206,682 230,206 254,205

exposure to structural risks, such as to real estate and