Emirates International Investment Company LLC (EIIC), the investment arm of National Holding, has boosted its interest in Abu Dhabi Islamic Bank (ADIB) to 47% by acquiring 7.6% stake from Mubadala Investment Company.
The transaction reflects the company's strong confidence in the prospects for the long-term growth of the UAE's second-largest Islamic lender by assets.
EIIC has a diverse range of interests, spanning multiple sectors, including banking, asset management, real estate, hospitality, fintech, as well as food and agriculture. As a global investor, the acquisition of the stake in ADIB is in line with Mubadala's strategy to create long-term value by optimising a global portfolio of investments across various sectors. Mubadala remains committed to the UAE banking sector as one of the largest investors in the industry.
Net profit jump
In Q1 2023, ADIB reported a jump in net profit of 54% to reach AED1.1 billion ($300 million). The bank also reported record revenues of AED2 billion for the same period, up by 45% year-on-year. This was driven by an 81% growth in funded income to AED1.4 billion, derived from growth in customer financing and higher margins.
ADIB also delivered a record return on equity of 23.4%. The Shariah-compliant bank continues to attract customers, welcoming 46,000 new customers in the first three months of 2023 alone.
The acquisition will likely benefit both companies, enabling ADIB to further expand its operations and increase profitability, while providing EIIC with a stable and profitable investment. The acquisition also underlines the UAE's reputation as a preferred investment destination in the region, with a dynamic and rapidly growing banking sector.-- TradeArabia News Service
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