ADIB-Egypt threatens Faisal Islamic Bank’s position in Islamic Banks’ asset Market

Recent monitoring by First Bank showed that the gap between Faisal Islamic Bank and Abu Dhabi Islamic Bank in the asset market has significantly narrowed.

The gap between Faisal Islamic Bank and Abu Dhabi Islamic Bank in the asset market has declined over the past five years from EGP 43 bn by the end of 2019, to EGP 16.3 bn by the end of 2023, recording the lowest level since Abu Dhabi Islamic Bank entered the Egyptian banking market.

The gap between the two banks was EGP 42.1 bn by the end of 2020, and then EGP 41.5 bn by the end of 2021.

The gap continued to shrink further, bringing the difference between the two banks to EGP 36.1 bn by the end of 2022 and reaching EGP 16.3 bn by the end of 2023.

This strongly enhances the probability of Abu Dhabi Islamic Bank taking the lead of Islamic banks instead of Faisal Islamic Bank, in case of the Bank continues its strong growth.

ADIB-Egypt recorded strong growth in its assets portfolio, rising to EGP 160.6 bn by the end of 2023, compared to EGP 115.5 bn by the end of 2022, with a growth of 39.1% and an increase of EGP 45 bn, marking the fastest annual growth in 5 years. 

As for the growth of Faisal Islamic Bank's asset portfolio over the past year, it also registered positive growth but at a lower pace than ADIB-Egypt, rising by 16.70%, reaching EGP 176.96 bn by the end of 2023, compared to EGP 151.6 bn by the end of 2022.

Overall, ADIB-Egypt recorded a strong performance over the past year, with net profits rising by 111.3%, to EGP 4.5 bn in 2023, compared to EGP 2.1 bn in 2022, with an increase of EGP 2.4 bn.

Net interest income jumped to EGP 8.8 bn in 2023, compared to EGP 4.7 bn in 2022, with growth of 85.7% and an increase of EGP 4.1 bn.

Net fees and commissions income rose by 49%, to EGP 1.5 bn in 2023, compared to EGP 1 bn in 2022.

The bank's total customer loans jumped to EGP 68 bn by the end of 2023, compared to EGP 59.7 bn by the end of 2022, with growth of 13.9% and an increase of EGP 8.3 bn.

It should be noted that the figures in the analysis according to the separate financial statements of both Abu Dhabi Islamic Bank and Faisal Islamic Bank.