<a href="https://www.thenationalnews.com/business/banking/2023/07/31/uaes-property-market-growth-to-continue-this-year-adib-executive-says/" target="_blank">Abu Dhabi Islamic Bank</a>, the biggest Sharia-compliant lender in the emirate by assets, reported a 29 per cent annual increase in net profit for the fourth quarter of last year driven by higher revenue and fee income. ADIB's net profit after zakat and tax for the three months to the end of December climbed to more than Dh1.5 billion ($408.7 million), the lender said on Tuesday in a filing to the <a href="https://www.adx.ae/English/Pages/NewsDetails.aspx?viewid=20240123165436-ADIB" target="_blank">Abu Dhabi Securities Exchange</a>, where its shares are traded. Gross revenue from funds during the reporting period rose by 33 per cent to nearly Dh2.6 billion. The bank’s full-year net profit jumped 45 per cent to a record Dh5.25 billion, while revenue surged 83 per cent year-on-year to more than Dh9.2 billion during the same period. “ADIB produced outstanding results in 2023 exceeding the Dh5 billion milestone in net profit,” said Jawaan Al Khaili, the bank's chairman. “The substantial increase in profitability and the strength of our capital position has allowed us to recommend an increase in our dividend payout to 71 fils per share.” Customer deposits rose 14 per cent to reach Dh157 billion, driven mainly by 9 per cent growth in current and savings accounts despite the high-rate environment, the lender said. These accounts comprise 65 per cent of total deposits. The bank’s total assets increased 14 per cent to Dh193 billion, fuelled by 6 per cent growth in gross customer financing and a 26 per cent surge in investment. The record return on equity of 27 per cent for 2023 reflects the “healthy and resilient” local economy, said Mr Al Khaili. “Amid global economic uncertainty, the UAE economy continues to grow, benefiting from strong domestic activity and from foreign inflows of capital,” he added. The Arab world’s second-largest economy expanded 3.7 per cent annually in the first half of 2023, driven by strong non-oil sector growth as the country continues to pursue its <a href="https://www.thenationalnews.com/uae/2023/06/20/sheikh-mohammed-bin-rashid-congratulates-uae-president-on-global-achievements/">diversification</a> goals, Minister of Economy Abdulla bin Touq said in October. The <a href="https://www.thenationalnews.com/business/banking/2023/05/16/uae-central-bank-imposes-sanctions-on-eight-lenders-over-compliance-failures/">banking sector</a> in the Emirates is well capitalised with adequate liquidity buffers and remained resilient against the risk of stagflation and market uncertainties in a stress-testing exercise, <a href="https://www.thenationalnews.com/business/banking/2023/07/14/uae-banking-sector-remains-well-capitalised-and-resilient-to-market-volatility-cbuae-says/" target="_blank">the Central Bank said in July.</a> Last month, the banking regulator increased its 2024 <a href="https://www.thenationalnews.com/business/economy/2023/03/27/uae-economy-projected-to-grow-by-43-in-2024-central-bank-says/" target="_blank">growth forecast for the country's economy</a> to 5.7 per cent, from 4.3 per cent previously, due to an expected rise in oil production next year. ADIB's revenue surged on the back of “an increase in transaction volumes and improved margins led by an efficient funding base and higher yields”, group chief executive Nasser Al Awadhi said. The bank attracted 206,000 new customers last year, bringing the total number of customers to 1.271 million. Its investment portfolio increased 26 per cent to Dh24.5 billion as of December 31. ADIB also grew its customers' financing by Dh7 billion in 2023, well within its guidance as it gained market share in key segments. “This was efficiently funded by adding Dh19 billion of new deposits including growing our low-cost current and savings accounts by Dh9 billion,” Mr Al Awadhi said.