T-Sukuk auction for April 2025 attracts bids worth Dhs6.12b
The auction attracted robust demand from eight primary dealers across both tranches maturing in May 2027 and September 2029. The total bids received reached Dhs6.12 billion, reflecting an oversubscription rate of 5.6 times, underscoring the strong confidence of investors in the UAE's creditworthiness and Islamic finance framework.The auction results highlighted competitive, market-driven pricing with a Yield to Maturity (YTM) of 3.83% for the May 2027 tranche and 3.93% for the September 2029 tranche. These yields represent a tight spread of 5 and flat basis points, respectively, above comparable US Treasuries at the time of issuance. The Islamic T-Sukuk programme plays a vital role in supporting the development of the UAE's Dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Furthermore, it reinforces the local debt capital market, contributes to the development of the broader investment landscape, and supports the UAE's long-term economic sustainability and growth objectives.
The results of the Islamic Treasury Sukuk (T-Sukuk) auction denominated in UAE dirhams, amounting to Dhs1.1 billion for February.
This issuance is part of the Islamic T-Sukuk issuance programme for the first quarter of 2025 as published on the Ministry's website.
The auction witnessed a strong demand from the eight primary dealers for both tranches maturing in August 2028 and September 2029, of the Islamic T-Sukuk, with bids received worth Dhs7.1 billion and an oversubscription by 6.5 times.
The success is reflected in the attractive market driven prices, with a Yield to Maturity (YTM) of 4.18 per cent for the tranche maturing in August 2028 and 4.21 per cent for the tranche maturing on September 2029, representing a spread of one basis point above US Treasuries with similar maturities at the time of the auction.
The Islamic T-Sukuk issuance programme will contribute to building the UAE dirham denominated yield curve, providing safe investment alternatives for investors, strengthening the local debt capital market, developing the investment environment, as well as supporting sustainable economic growth.
ADIB profit rises 18%: Abu Dhabi Islamic Bank (ADIB) reported a Q1 2025 net profit before tax of Dhs1.9 billion, rising 18% year-on-year, reflecting a strong balance sheet growth, coupled with increased business momentum and a sustained customer growth. Q1 2025 net profit before tax increased 18% compared to Q4 2024, reflecting significant growth and reinforcing the positive trajectory we have built over recent quarters. Net profit after tax for Q1 2025 was Dhs 1.7 billion, reflecting a 18% increase compared to Q1 2024.
Revenue for Q1 2025 improved by 14% to Dhs2.9 billion compared to Dhs2.5 billion for Q1 2024. This exceptional growth reflects broad-based performance across all key segments. This was supported by an increase in both income from financing activities and non-funding income. The strong business volumes along with continued strength in fee-based businesses, played a significant role in this improvement.
Total assets increased by 25% year-on-year to reach Dhs244 billion. This growth was driven by financing growth in both retail and corporate banking, as well as an expansion in the investment portfolio.Customer financing grew by 28% year-on-year, representing Dhs33 billion increase compared to last year and Dhs8 billion increase year to date. This reflects market share gains across key segments and wholesale banking closing landmark deals. Customer deposits rose by 25% year-on-year to Dhs200 billion, compared with Dhs160 billion at Q1 2024. This growth maintained a healthy funding mix, with a 12% year-on-year growth in Current and Savings Accounts (CASA), which now comprise 69% of total deposits.
Jawaan Awaidah Al Khaili, Chairman of ADIB, said: ''We started the year with a strong performance, continuing the positive trajectory built over previous quarters. Our results are a clear reflection of our ability to grow profitably and execute our strategy with discipline.'
He concluded, 'This outstanding performance was underpinned by strong revenue growth across all segments, improved cost efficiency and the best asset quality metrics we've seen to date.'
In 2024, ADIB achieved a record performance a with Net Profit after tax totalling Dhs6.1 billion, an increase of 16 percent compared with Dhs5.25 billion in 2023.
Net Profit before tax increased by 26 per cent year-over-year (YoY) to Dhs6.9 billion.
During the last quarter of 2024 (Q4 2024), net profit before tax reached Dhs1.6 billion, up 7 percent YoY.
WAM
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
17 hours ago
- Zawya
Morocco to resume sukuk issuance, says central bank governor
Morocco is preparing its second Islamic bond, or sukuk, issuance since 2018, Central Bank Governor Abdellatif Jouahri said on Thursday. The central bank and the ministry of finance are reviewing the technical aspects of the issuance, Jouahri told reporters without offering details on the amount of the bond. The Higher Council of Ulema, Morocco's top religious authority, will assess whether the issuance complies with sharia, he said on the sidelines of the annual meeting of the Islamic Financial Services Board, a Malaysia-based international standards-setting body that promotes Islamic finance. Morocco's first sukuk issuance in 2018 raised 1 billion dirhams (approximately $110 million) and matured in 2023. The country permitted Islamic finance, locally known as participatory banking, in 2017 as part of a wider plan to bolster financial market liquidity and attract foreign investment. However, Islamic finance remains a small segment of Morocco's banking sector, accounting for just 2% of total bank assets, Jouahri said. Moroccan Islamic banks have extended 35 billion dirhams in credit but have only attracted 12 billion dirhams in deposits since their launch, demonstrating a persistent "liquidity problem," he said. Despite its small scale, Morocco's Islamic finance sector posted the second-fastest asset growth globally at 27.6% over 2019-2024, according to the IFSB's latest report. Developing a robust government sukuk market should be Morocco's next focus to develop Islamic finance, Secretary General of the IFSB Ghiat Shabsigh told Reuters. Morocco's "cautious approach" to Islamic finance could serve as a model for countries in Sub-Saharan Africa and Central Asia where the IFSB aims to expand its foothold, he said. (Reporting by Ahmed Eljechtimi, Editing by Louise Heavens)
Zawya
a day ago
- Zawya
Gold and its miners may enjoy a 'critical mineral' upgrade: Russell
(The views expressed here are those of the author, a columnist for Reuters.) LAUNCESTON, Australia - Is gold the next metal to be added to the list of "critical minerals"? Gold is not a vital component of advanced manufacturing like other critical minerals such as rare earths, lithium and copper. But the precious metal appears to be undergoing a subtle shift in how it is viewed by governments and investors. Since countries moved away from the gold standard by the early 1970s, gold has largely been viewed as a relatively niche part of investment portfolios and government reserves. Gold was something that was added to portfolios as an inflation hedge or during times of heightened geopolitical tensions. In some ways, the role of gold in both central bank and investment portfolios was overtaken by bonds, with U.S. Treasuries becoming the most important of these assets. But the return of Donald Trump to the U.S. presidency is leading to a global reassessment of the relative safety of U.S. assets, the independence of the Federal Reserve and the likely worsening of the U.S. fiscal position. Add in Trump's attacks on the rule of law in the United States and the likely hit to both the U.S. and global economies from his trade policies, and the stage is set for a reevaluation of the role of gold. The precious metal has gained 32.3% from a low of $2,536.71 an ounce hit on November 14 in the days after Trump's victory over his Democratic Party rival, former Vice President Kamala Harris. It reached a record high of $3,500.05 an ounce on April 22, and has since retreated slightly to close at $3,357.08 on Wednesday. While gold's day-to-day moves are still largely driven by the news cycle, the overall backdrop looks supportive. The World Gold Council released a report last month in which it surveyed 73 central banks, and 95% of them expected the official sector to increase holdings in the coming 12 months. "This is a record high since it was first tracked in the 2019 survey and represents a 17% increase from the 2024 findings," the council said. Central banks are also moving to repatriate more of their holdings back to their home countries and away from the United States, a further sign that there is a loss of confidence in U.S. assets and the policies of the Trump administration. Gold is also well-placed as one of the few viable alternatives if more governments, fund managers and private investors outside the United States form the view that the era of U.S. exceptionalism is over and that U.S. Treasuries are now a riskier asset as the country's fiscal position deteriorates. MINING COMPANIES Another factor that is showing the positive story for gold is the performance of gold mining equities. Major gold producers have seen their share prices rise at a far faster pace than the actual metal. There are several reasons why this could be the case, including the expectation that shareholders will receive higher dividend payouts in the future and that companies are being rewarded for showing capital discipline in prior years. But it also may be that investors are starting to re-rate gold mining companies in the expectation that gold becomes a more vital and larger part of portfolios, both public and private. For example, shares in Newmont, the world's largest listed gold miner, have risen 63% from their most recent low on December 30 to close at $60.06 on Wednesday. Canada's Barrick Mining has seen its shares gain 40.6% in U.S. dollar terms from its recent low on December 19 to the close on Wednesday. Anglogold Ashanti shares in New York have surged 108% from the low on December 30 to the close of $46.66 on Wednesday, while Gold Fields has seen a gain of 88% in U.S. dollar terms from its November 14 low to the close on Wednesday. If gold does become a more central part of investment strategies, the listed miners are likely to become more attractive, given the difficulty of finding and developing new projects and the long time between exploration and production. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn and X. The views expressed here are those of the author, a columnist for Reuters. (Editing by Jamie Freed)
Zawya
2 days ago
- Zawya
RAKEZ, ADIB sign partner to simplify banking for investors, support business growth
Ras Al Khaimah Economic Zone (RAKEZ) has recently signed a Memorandum of Understanding (MoU) with Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, aimed at facilitating the bank account opening process for RAKEZ clients. The agreement was signed by RAKEZ Chief Government and Corporate Relations Officer Yaser Abdulla Al Ahmed, and ADIB Retail Banking Global Head Amit Malhotra. Through this partnership, RAKEZ clients will gain seamless access to ADIB's diverse range of business banking products and services. This includes a broad selection of business accounts with comprehensive features, along with a full suite of bespoke digital banking solutions tailored to the needs of SMEs and start-ups. Commenting on the partnership, Ramy Jallad, Group CEO of RAKEZ, said, 'At RAKEZ, we are always looking for ways to improve our service offering and enhance the overall investor experience. Our collaboration with ADIB is part of our commitment to providing end-to-end support for our clients, from business licensing to banking facilitation. With this added layer of support, clients can transition quickly from set-up to success, focusing more on growth opportunities and less on administrative tasks.' Amit Malhotra, Global Head of Retail Banking at ADIB, said, 'Our partnership with RAKEZ demonstrates our unwavering commitment to empowering SMEs, the backbone of the UAE's economy. ADIB is committed to facilitating the growth of SMEs and has been constantly supporting them through several initiatives that enable business owners to reach their full potential. This collaboration not only enhances our ability to provide advanced Sharia-compliant banking solutions but also solidifies our role as a trusted partner for growth-oriented businesses. Through this initiative, we are extending our support to SMEs with tailored financing options and comprehensive banking services that cater to their unique needs, enabling them to scale, innovate, and contribute to the UAE's long-term economic vision.' The collaboration reflects RAKEZ's ongoing commitment to simplifying the business journey for investors and entrepreneurs, making it easier and more efficient to start and operate a business in the UAE. By combining their resources and expertise, RAKEZ and ADIB aim to empower SMEs with advanced financial tools that support their growth, while contributing to the UAE's vision of strengthening the SME sector as a key pillar of the national economy.
